# Extreme Climate Events and Energy Market Vulnerability: A Systematic Global Review
## 6 Discussion
These investigations emphasize the considerable consequences for the economy of climate-related energy interruptions, highlighting the importance of having resilient market frameworks. Flood risks were also a major danger for energy infrastructures on a global scale. In northern California, for example, climate flood risks impair the resilience of electricity networks that are protected by dikes with a negative effect on system performance, and in southern Italy it is shown how wastewater treatment plants face higher energy and operating costs due to variability in rainfall patterns. These examples are evidence of the importance of including climate risk assessments in water and energy infrastructure planning to ensure functionality under extreme conditions. The interrelationship between energy systems and geomagnetic storms has been widely studied. In the Czech Republic, it was found that geomagnetic storms induce a 5-10% increase in transformer anomalies within a 24 h period, peaking within days due to a delayed effect. In Russia, models simulating the effect of geomagnetically induced currents were built, detecting vulnerabilities in the power grid in the Samara region. The studies carried out demonstrated the importance of predictive modelling and grid reinforcement to protect critical infrastructure from geomagnetic disturbances, while emphasizing the universal nature of climate risks in relation to energy systems. The vulnerability of hydroelectric systems to climate change has been studied, in particular, in regions where hydropower is dominant in the energy mix, which has led to the study of the influence of climate change on hydroelectric performance at a global level,and in particular in high-emission scenarios, where a reduction in water availability may imply reductions in generation capacity, with similar dynamics taking place in Colombia, where hydroelectricity represents an important portion of the energy matrix. Severe droughts caused by El Nino events have reduced hydroelectric capacity by up to 30%, leading to an increasing dependence on more expensive and polluting thermal power plants. With respect to extreme weather events, wind hazards have come to be considered a critical risk for power transmission lines. They have been quantified for power lines worldwide along coasts where high wind speeds and aging infrastructure increase the probability of outages. In Colombia, there are also vulnerabilities in this regard, especially in the case of coasts exposed to hurricane-force winds. Transmission lines older than 20 years in these regions have been shown to have a 40% higher risk of failure, implying the need for modernized designs and structural reinforcements. Energy system stakeholders should take measures to develop adaptive infrastructure, such as strengthening the resilience of the electricity grid, decentralizing energy generation sources, and implementing early warning systems to mitigate climate-related risks in vulnerable developing areas. Future research should prioritize the acquisition and analysis of detailed quantitative data on the pricing behavior of energy markets following extreme climatic events, with a particular focus on developing countries, where systematic studies are fewer and resilience capacities tend to be more limited. While the literature consistently reports that extreme climate events drive significant volatility and price increases in energy markets, specific quantitative estimates vary across regions and events, limiting a uniform numerical analysis.