# Extreme Climate Events and Energy Market Vulnerability: A Systematic Global Review
## 4 Impacts and Adaptation Strategies to Natural Events: A Review of Global Studies
### Global Studies
Within the broader context of space-related disturbances in energy systems, attention has also been given to the impact of magnetic storms on electric power transmission [16] as these phenomena can cause operational stress and potential infrastructure failures. The authors mention that magnetic storms generate geomagnetically induced currents (GIC) in high voltage systems, which leads to the saturation of the transformer's magnetic circuits, and with this to large overloads; in addition, thermal stress is also generated that can damage the components. The authors propose a prediction system to mitigate these types of effects when there are magnetic storms; in addition, they offer important information for people in charge of designing transformers, in order for them to incorporate protection measures in the manufacture or maintenance of these machines. The relationship between natural disasters, climate change, and the dynamics of clean and fossil energy markets has also been explored in the context of climate uncertainty [17]. The researchers analyzed whether these markets function as complements or substitutes under a climate-related perspective when there is climate uncertainty. To do this, the study was conducted from 2015 up to 2022 using data from global energy markets. One of the main conclusions that can be drawn are that clean and fossil energies tend to behave as substitutes in the short term; however, in the long term they show a higher degree of complementarity, synchronizing their market dynamics. Moreover, the authors also agree that every extreme climatic event generates changes in financial markets regardless of the phenomenon studied. In the research, the BEKK-GARCH model was used to analyze and determine the volatility spillover effects across energy markets. The findings suggest that extreme weather events increase volatility in both clean and fossil energy markets, which in turn may lead to greater uncertainty and stronger correlations between them. From the literature review, relevant information was extracted encompassing various aspects related to events impacting electrical systems. This information includes details about the specific event, the date and location where it occurred, the supply interruptions and grid instabilities that arose, the system responses implemented to mitigate the effects, the proposed policies to prevent future incidents, and the references supporting this observation. The summary of all the studies analyzed can be found in Table 1.  
In Table 1, it can be observed that all climate events cause supply interruptions and grid instabilities. In addition, the system response includes changes in consumption patterns as well as price volatility. A general trend regarding the proposed strategies includes the following: diversification, carbon pricing, and the promotion of renewable energies. On the other hand, a matrix is presented in Table 2, where it is clearly observed that all analyzed climate and geopolitical events have an impact on supply interruption, grid instability, price volatility, changes in the composition of the energy mix, and the development of a policy proposal to mitigate these events--except for geomagnetic storms which apparently do not generate price volatility nor induce changes in energy production relative to the traditional energy mix.