Part of a new industry series: Powering the Future™: Climate Risk Intelligence For The Energy Industry
To understand the complexity of climate risk in the energy sector, this series is organized around two main areas: electric utilities and energy production. These two pillars make up both the operational framework and the physical infrastructure of modern power systems, each facing unique yet related climate challenges. By examining them separately and in detail, this series offers readers a clear framework for identifying vulnerabilities and developing resilience.
The first part of the series focuses on electric utilities, which are responsible for generating, transmitting, and distributing electricity to consumers. This includes generation utilities, transmission system operators, local distribution companies, vertically integrated firms, and specialized entities like municipal utilities, rural cooperatives, power marketers, and regional grid operators (ISOs and RTOs). Each of these entities faces climate hazards in different ways—from heatwaves that lower transmission efficiency to wildfires that endanger distribution lines to regulatory changes that impact the economics of power purchasing. This section examines how utilities can evaluate physical and transition risks, strengthen infrastructure, incorporate distributed energy resources, and adapt to increasing regulatory and stakeholder demands.
The second half of the series focuses on energy production, covering the physical technologies and facilities that generate power from fossil fuels, nuclear processes, renewable sources, and emerging technologies. Power plants—whether coal-fired, gas-powered, solar, wind, hydroelectric, or hydrogen-based—face increasing operational challenges due to extreme weather, changing precipitation patterns, resource scarcity, and stricter emissions standards. This section looks at the risks facing each type of generation infrastructure, the climate vulnerabilities of centralized versus distributed models, and the innovations shaping the next generation of climate-resilient energy production.
Together, these two sections present an integrated approach to climate risk intelligence. While utilities manage the grid and ensure delivery, production assets are the source of electricity itself. Understanding both is crucial for strategic planning, investment, and system transformation in a world impacted by climate change. This dual structure reflects the interconnectedness of the real-world energy system, aiming to help readers develop a comprehensive understanding of how to power the future with resilience and foresight.
Ready to get started? To learn more about how ClimaTwin can help you assess the physical and financial impacts of future weather and climate extremes on your infrastructure assets, capital programs, and investment portfolios, please visit www.climatwin.com today.
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