A tram stalled in Madrid after a power outage caused chaos across Spain on Monday afternoon.

The filmer said: 'They removed the tram that was stopped in the middle of the road in the San Bernardo area.'

Officials said the electricity cut was part of a major grid failure that impacted large parts of Spain and Portugal.

The country declared a state of emergency. More than 30,000 police officers were deployed to deal with the mayhem caused by the power failure.

Spain's reliance on solar and wind was said to have exacerbated the power cuts because the renewables can make the grid less stable.

By early Tuesday, power had been restored to nearly 90 per cent of mainland Spain, with lights also returning in Madrid and Portugal's capital, Lisbon.