# Extreme Climate Events and Energy Market Vulnerability: A Systematic Global Review
## 4 Impacts and Adaptation Strategies to Natural Events: A Review of Global Studies
### Latin America
The simulations project changes in water availability and hydropower capacity over the next 30 years, assessing their impact on electricity generation. The results indicate that the loss of hydropower generation estimated is still a relatively small proportion of growth in Colombia's electric demand, but these losses necessitate substantial investments in other technologies. In addition, RCP4.5 gives priority to renewable sources such as wind and solar, and the RCP8.5 scenario mostly adopts fossil-based technologies with carbon capture and storage. The trade-offs between the said mitigation strategies include renewable deployment as opposed to relying on traditional energy sources. Hydroelectric power plants are greatly affected by climate change, which subsequently influences expansion strategies of these systems, according to [PERSON] et al. [67]. The need to analyze the influence of climatic phenomena like El Nino upon hydraulic generation planning, especially in the medium to long term, led to this study. The paths of the analyses show that a number of processes linked to El Nino with associated severe droughts tending to reduce river flows and create low levels in reservoirs, thus greatly affecting the generating capacity. For instance, Colombia's hydroelectric power plants can suffer a 30% reduction in capacity during a drought. Increased dependence on thermal plants results in a rise in generation costs and CO\({}_{2}\) emissions and puts pressure on new strategies. The author recommends diversifying into the non-conventional renewable sources of solar energy and wind and also discusses efficient water resource management measures. All of this aims to counteract the impacts of climate change, ensure energy security, and optimize generation costs. Additionally, the authors show how energy prices in the stock market responded to episodes of El Nino and La Nina. During periods of very intense El Nino--such as the event between January 2015 and 2016--energy prices rose significantly, reaching nearly $1900. This represents an increase of up to 87.5% over the period, underscoring the substantial impact of extreme climatic conditions on market behavior. Moreover, hydrological vulnerability due to climate change is further addressed by analyzing the effect of climate change on river discharge and flooding extent in the Magdalena River basin in Colombia. An important study applies a hydrological and hydrodynamic model based on general circulation projections [68]. The research analyzes debated scenarios based in the future under different Representative Concentration Pathways (RCPs: RCP4.5 and RCP8.5) to determine changes in hydrology and flood risk assessment. The analysis uses climate time-series data to assesses future river discharge and flood risk areas. The authors reveal that, according to the RCP8.5 scenario, extreme floods could become more frequent and damaging in the basin by the middle of the 21 st century. While projections reveal an uptick in the flood extent in important areas of the basin with considerable consequences for agriculture, infrastructure, and urban sectors, that change underscores the increasing vulnerability of the Magdalena River basin to climate-change-induced hydrological alterations. The final statements illustrate how climate adaptation strategies ought to be integrated in water management policies. The authors suggest enhancing flood forecasting systems, improving resilience of infrastructures, and implementing sustainable land-use practices to mitigate damages. These findings provide an important connection between political actions, water resource management, and regional stability in Colombia. Table 7 summarizes the key findings related to climate impacts and adaptation strategies.