A Wake-Up Call for the Utility Industry: Extreme Weather and Fundamental Lessons from 2021

Abstract

We have examined the critical extreme weather events of 2021 that resulted in disruptions of normal power system operations, the loss of life, and multibillion dollar losses to the US economy. These impacts occurred due to extreme cold, extreme heat, drought, slower post-landfall dissipation of hurricanes, and more intense large-scale thunderstorm systems. We point to the causes but also argue for the changes in planning and operations required to be prepared for and have responses to these events. Specifically, we focus on recognizing the reality of extreme events and planning for their increasing frequency, intensity, duration, and geographic scope; modifying resource planning and adequacy metrics to incorporate common mode events; enabling the power system to depend on reliable natural gas fuel supplies; redesigning power markets to better compensate resources and flexible demand for reducing the probability of outages; and developing resilient systems.