The Epicenter defines infrastructure as the physical, economic, and social systems central to the functioning of an economy and a society. Resiliency in critical infrastructure is about the ability to withstand extreme climate impacts and recover from them quickly.
If $1 invested in disaster prep saves $13, then it's clear investing in preparedness produces a higher ROI than recovery. But what does that preparation look like? An interview with Nanotech Materials offers an example of resiliency in the category of fortified roofing and building materials.
If each $1 invested in disaster preparation saves $13 in economic costs, damages, and cleanup, then it's clear that investing in the preparation for climate-related catastrophes produces a higher ROI than just focusing on recovery alone. But what, exactly, does that preparation look like?
Extreme weather events wreak havoc on a grid not designed to endure their frequency and intensity, but there are solutions to build resiliency. 1. Modernize grid infrastructure; 2. Install more microgrids; 3. Roll out more renewable energy to reduce fossil-fuel dependence
Today, over 70% of the U.S. electricity grid is more than 25 years old. With most of it built in the 1960s and 1970s, we’re relying on a 20th century grid to power a 21st-century economy.
An old grid is not only a dirty grid, it’s also a vulnerable grid. Extreme weather events and natural disasters wreak havoc on a grid not designed to endure their frequency and intensity. The state of today’s grid threatens our power supply and poses a fundamental challenge to the United States’ resiliency and economic stability.
The electric grid—the network of energy sources, transmission lines, and distribution systems that generate and deliver electricity to homes and businesses across the country—is the backbone of the U.S. economy, and will only become more critical as we invest in data centers and artificial intelligence infrastructure. An article in Bloomberg last month reported that electricity demand from AI data centers is poised to rise so fast, it will be like adding two new regional power grids serving an area the size of New England in the coming decade.
Natural disasters and weather events are putting a greater strain on grid infrastructure. From 2000 to 2021, weather-related events were responsible for 83% of all power outages. Power outages from severe storms have doubled in the last two decades, and the leading causes of electric power outage events are climate-related threats like coastal flooding, heat waves, ice storms, droughts, wildfires, and severe storms. Today, on average, an American can expect to experience an average of five hours of weather-related outages per year (up from two hours just 10 years ago).
An old grid is an unreliable grid. A 2021 report by the American Society of Civil Engineers (ASCE) found that 70% of our grid’s transmission and distribution lines are already into the second half of their 50-year lifespan. Maintenance and upgrades are needed, but the ASCE projects that by 2029, the U.S. will face a gap of $197 billion in the funding required to strengthen the grid and install critical upgrades to reach renewable energy standards (across all three major components of the electric grid: generation, transmission, and distribution).
Growing energy demands are outpacing the existing infrastructure. Demand for energy is rising, due to a multitude of factors including new AI-focused data centers, electric cars, and investments in domestic manufacturing. A 2024 report from the power consulting firm Grid Strategies found that electricity demand in the U.S. is forecast to increase five times faster than predictions made just two years ago—a rate of growth not seen since the 1980s.
However, it’s a mistake to conclude that the U.S. grid is old infrastructure stuck in the past. The grid is evolving like never before: it’s becoming more modern, more tech-enabled, and less reliant on fossil fuels. Over the last 25 years as the grid has integrated renewable energy sources like wind and solar, the United States’ reliance on fossil fuels for electricity has decreased from 71% to 59%. The Energy Information Administration projects that renewable generation will supply nearly half of all electricity by 2050.
There is no silver bullet to making the U.S. grid more resilient and reliable. But there are solutions and steps to ensure our grid works in an age of more frequent natural disasters and severe weather events.
A modern grid is a more resilient grid. Grid-enhancing technologies like advanced conductor cables (i.e. power lines) can better withstand heat and severe weather, while dynamic line ratings, which determine in real-time (instead of through historical models) how much power can be transferred through the grid based on weather conditions, are better suited for fluctuating energy demand during extreme weather events.
“GridTech” has become a big industry. An article in CTVC last year mapped the opportunity space for GridTech and outlined some of the leading technologies, like digitized transformers that allow grid operators to monitor grid health in real-time and predict faults before they happen.
Finally, simply burying power lines beneath the ground can lead to a grid less susceptible to extreme weather. There are over 5.5 million miles of distribution lines in the United States and over 180 million power poles. Last year, the U.S. Department of Energy invested $34 million to underground power lines in 11 states as part of a larger effort to make the grid more resilient.
Microgrids are localized power grids that aren’t reliant on the main grid. Today, many of the 692 microgrids in the U.S. use renewable energy sources, like wind and solar, and rely on battery energy storage systems (BESS) to store excess power. When the main grid is experiencing an outage due to a weather event, a microgrid can still deliver uninterrupted power to the communities it serves.
Less dependency on the main grid means greater resiliency in the face of a natural disaster, which is what happened in 2022 when Hurricane Ian hit. Microgrids in Florida, Georgia, Virginia and the Carolinas created “electric sanctuaries” where communities were able to keep the power on and ensure that medical and emergency services could address community needs.
As part of the U.S. Army’s strategy to keep critical defenses operational during foreign attacks or natural disasters, it plans to build pollution-free microgrids at each of its 130 bases worldwide by 2024.
Renewable energy sources like wind and solar can reduce the strain on the grid during times of peak usage. For example, in 2023 during a heatwave in Texas, solar and energy storage stepped in while 10 gigawatts of power from coal and nuclear plants were offline.
This is good news because America’s traditional, fossil fuel power fleet is becoming increasingly unreliable. In its 2023 “State of Reliability” report, the North American Electric Reliability Corporation’s (NERC) reported that fossil-fuel generated power is experiencing its “highest level of unavailability” and facing severe reliability challenges, primarily due to poor performance during extreme weather events and the increased frequency of coal-fired power plants to be down. The use of fossil-fuel energy sources was up 170% in January to maintain power during the cold snap that swept through the Southeast, but it is not a reliable source of power in an age of more frequent extreme weather events.
An analysis from The Center for American Progress analyzed the field of study and research exploring the relationship between grid resiliency and renewable energy. It found extensive evidence of the superiority of renewable energy in strengthening grid resiliency.
Modernizing infrastructure, expanding microgrids, and accelerating renewable energy adoption represent three pillars of grid resiliency that will fortify the grid in the face of increasingly frequent extreme weather events.
If each $1 invested in disaster preparation saves $13 in economic costs, damages, and cleanup, then it's clear that investing in the preparation for climate-related catastrophes produces a higher ROI than just focusing on recovery alone. But what, exactly, does that preparation look like?
There are no silver bullet solutions for the private sector to adopt to dramatically reduce the costs of winter storms. The biggest lever to bring costs down exists in modernizing and winterizing the grid—an endeavor that will require substantial technological, mechanical, and financial investments.
A smart transition of FEMA toward state and local disaster responsibility would encompass 1) reform to the Stafford Act to rebalance federal and state contributions, 2) a restructuring of state disaster relief funds, and 3) a shift toward regionalization of disaster response.
The muni bond market presents an opportunity to finance resiliency in a way that aligns policy-makers, community stakeholders, business interests, and investors. By strengthening local infrastructure to render assets less vulnerable to climate shocks, it can reduce disaster costs for communities.