Climate change and energy
Decision making under uncertainty in the context of future climate change: applications in the energy sector
Client: DG CLIMA
In the lead-up to the EU strategy for Adaptation to Climate Change issued in 2013, the Commission examined the challenges the EU may face with regards to climate-related disruptions to certain supply chains, including that of energy supply.
The aim of this study was to help the European Commission demonstrate how the EU energy sector (utility companies; network operators) can incorporate climate adaptation issues into investment decision-making.
For this project, Milieu developed a case study covering the planning and actions taken by a major EU transmission network operator (the UK’s National Grid plc) to protect its assets and customers against damage and interruption, thus protecting the broader economy from disruption of its essential service.
Given the risks and uncertainty posed by climate change, a central element of this study was to assess in detail the ways in which the National Grid plc went about measuring and reducing their exposure and what investments it has made, or plans to make, to reduce its vulnerability to possible future events.
The output of this case study was a set of findings and recommendations focused on informing other energy (electricity, gas) network operators in other EU countries of how such an analysis can be done, and what benefits it could provide. This study formed a part of the overall EU Adaptation Strategy published in April 2013.