# Extreme Climate Events and Energy Market Vulnerability: A Systematic Global Review
## 3 Classification of the Climatic Environments with Impact on Energy Markets  
By conducting an in-depth analysis of the literature, natural events that cause a significant impact on energy systems in different countries around the world were identified and categorized. This choice was made to determine which events were most significant, based on their economic impact, operability, and the consequences they may cause in the energy market. For such purposes, those extreme weather events that have tangible and measurable consequences on the generation, distribution, and consumption of energy around the different countries were considered:  
* Hurricanes and tropical storms: These specific types of weather events and disasters pose a significant threat to the electrical infrastructure, as they can cause damage to various system components, as well as to the infrastructure of transmission lines, substations, and other components of the electrical system. The long power outages resulting from storms result in high restoration costs and significant economic losses.
* Magnetic storms: These create geomagnetically induced currents (GIC) that saturate transformers and cause overloads in transmission systems. Such overloads increase operating costs and generate catastrophic failures of the infrastructure. An explicit example is the effect of magnetic storms in Alberta (Canada), where transmission lines have very high induced voltages, which endanger the robustness of energy systems.
* Droughs: These directly affect hydroelectric systems as they reduce generation capacity, which causes an increase in dependence on thermal plants, thus an increase in operating costs and CO2 emissions. In Colombia, the phenomenon known as \"ElNino\" can cause reductions in hydroelectric capacity of up to 30%, thus highlighting the vulnerability of the sector to extreme climatic variations.
* Floods: Extreme floods have a serious impact on substations and power transmission systems, causing long power outages and costly repair work, as these floods are usually caused by rivers located near cities and towns.
* Heat waves and extreme cold: Extreme temperatures alter the demand for electricity, with a significant increase in consumption for cooling, specifically in heat waves, in addition to the increase in the use of heating in periods of extreme cold. The conditions mentioned also affect the efficiency of generators and create greater volatility in the energy markets of the region. For example, in the western United States, these heat waves have increased the operating costs of energy companies as a result of the increase in the additional capacity needed to meet demand [12].
* Dust storms: Dust storms contaminate electrical insulators, consequently causing more failures in distribution systems, in addition to making maintenance more expensive. For example, in Iran, dust storms have caused frequent power outages and increased operating costs for local energy companies. Taking this classification into account, the following section presents the results obtained in the literature review, grouping chronologically the most relevant research in different geographical areas. Throughout the review, a general description of each article is made, as well as summarizing the general objectives, methodology, place of application, and results obtained.