# Extreme Climate Events and Energy Market Vulnerability: A Systematic Global Review
## 4 Impacts and Adaptation Strategies to Natural Events: A Review of Global Studies
### Europe  
In Europe, there are different energy systems that are characterized by their diversity and efficiency; however, despite the fact that the continent has made great progress in the area of alternative energies, these are largely affected by climate fluctuations such as storms, floods, and cold and heat fluctuations, which affect temperature, wind, water, and, in turn, the generation of renewable energy. These problems often cause prices to increase, it is generally expected that, with less energy production, the price to the final consumer will increase. In this section of the review, different investigations that deal with these problems are studied. The integration of ice storms into planning systems aimed at the location of wind farms and power lines has also been explored, with the objective of improving the resilience of \begin{table}
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**Event** & **Location/Ref.** & **Impact** & **Response/Strategy** \\ \hline Geomagnetic storms & Russia [18] & Grid instability, harmonic distortion. & Network redesign and real-time monitoring. \\ \hline Wind power under extreme weather & Iran [19] & Forecasting uncertainty due to wind/temp. & ANFIS-PSO model with wavelets, MAPE: 5.78\%. \\ \hline Water stress and agriculture & Iran [20] & \(-9\%\) water, \(-32\%\) yield in worst case. & Optimal cropping, deficit irrigation, losses to 2.8\%. \\ \hline Dust storms on distribution systems & Iran [21] & Insulator failure, blackouts. & SMIP model with mobile backup and crew routing. \\ \hline \hline \end{tabular}
\end{table} 
Table 3: Analysis of the extreme weather events that occurred in Asia and classified in terms of their impact on the energy systems and mitigation strategies. Source: own elaboration from [18; 19; 20; 21]. electrical systems against possible interruptions and problems induced by extreme weather events [22]. The interesting thing about this work is that case studies are proposed for their respective analysis and in these they focus on a cost-benefit simulation by comparing planning alternatives that consider extreme climate risks with those that do not and then indicate as results that the integration of risk assessment in spatial planning significantly reduces the potential damages of extreme climate events. This can be achieved with two approaches: the first is to update engineering standards and the second, avoiding high-risk areas. Research has also been conducted about the connection between climate change and volatility in electricity markets, specifically considering how the potential for climate change creating uncertainty in revenues from hydroelectric resources is linked to the consequences of disruption of water flows and electricity prices to the economics of the hydro sector. The study reveals that uncertainties evolve differently: while runoff shifts from natural variability to epistemic uncertainty, electricity prices follow the opposite path, becoming increasingly unpredictable in the long term. These findings have major implications for regions highly dependent on hydropower, as managing these risks is crucial to maintaining a reliable electricity supply under changing conditions [23]. Continuing this line of analysis, spatial planning has also been studied as a tool to prevent risks associated with extreme weather events in electric power infrastructure, with two case studies proposed in Slovenia, Europe, where the damage caused by ice storms to networks and heavy rains to hydroelectric plants is examined [24]. The authors propose a risk assessment and risk-informed spatial planning methodology to identify locations for the structure, where exposure to extreme weather conditions can be minimized. When the study evaluates ice storms, the impact on transmission lines is studied, while, for heavy rains, it evaluates erosion and sedimentation risks for hydroelectric plants.