Climate and disaster risk screening: making energy projects more resilient
This publication reviews the importance of screening energy projects for climate and disaster risks. Screening power sector investment projects in the planning stage is a key step in identifying resilience issues and embedding solutions in the project’s design. Natural disasters and extreme weather events of various types, exacerbated by climate variability and are serious risks for the power sector. Disasters such as hurricanes, cyclones, floods, extreme rainfall, droughts, and seasons of severe heat are imposing substantial financial burdens on electric utilities and governments as they deal with service interruptions (including sustained blackouts) and the effects of those interruptions on the economy. The economic impacts of the loss of electricity service and of damage to grid infrastructure can be catastrophic in some cases, leaving millions in the dark and costing the utility billions in lost revenue and recovery and restoration expenses.
This publication provides recommendations on improving Climate and Disaster Risk Screening (CDRS). Sharing knowledge and data can significantly improve the screening process while also encouraging investments in resilience To optimize the CDRS process, all available data and resources must be readily accessible to project teams. A one-stop repository of essential climate data (as well as past risk screenings that specifically address risks faced by energy projects) will reduce the amount of time teams must spend on screening while also creating a platform for sharing valuable resources among teams across sectors. Beyond data sharing, exchanging knowledge and building awareness about CDRS can advance the screening process and bring resilience to the forefront of infrastructure investment discussions.