Energy infrastructure underpins modern economies and quality of life. Disruption to power or fuel supplies impacts upon all other infrastructure sectors, and affects businesses, industry, healthcare and other critical services both within and across jurisdictional boundaries . The economic impacts of climate change risks are significant, for example in the EU, the expected annual damages to energy infrastructure, currently €0.5 billion yr-1, are projected to increase 1612% by the 2080s . In China, 33.9% of the population are vulnerable to electricity supply disruptions from a flood or drought , whilst in the USA, higher temperatures are projected to increase power system costs by about USD 50 billion by the year 2050 . In a study of 11 Central and Eastern European countries, researchers found that energy poverty is exacerbated by existing infrastructure deficits and energy efficient building stock, as well as income inequality, which can lead to reduced economic productivity . Climate change is expected to alter energy demand , for example heatwaves increase spot market prices , with a disproportionate impact on the poorest and most vulnerable populations. Energy infrastructure are susceptible to a range of climate risks , whilst issues pertaining to energy demand are considered by Working Group III.
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report