Forget hackers, researchers say that a severe solar storm could shut down the US power grid for months and cause up to $2.7 trillion in damage in a new report from the Cambridge Centre for Risk Studies and American International Group (AIG).
Uncertainty swirls about the potential impact of “extreme space weather” such as coronal mass ejections (CME), or solar storms, on modern technology, according to the new report, called the Helios Storm Scenario. Researchers emphasize their studies should be considered a stress test, not a prediction, but examined three potential scenarios ranging in severity. The $2.7 trillion estimate reflects the most severe event, with all economic impacts included. Insured losses were found to be more in the range of $55 billion to $333.7 billion.
Solar storms affecting society are not without precedent; researchers referred to the Carrington Event, an 1859 solar storm that disrupted telegraph operations and revealed that solar activity can affect terrestrial technology. A 1989 event knocked the power grid in Quebec, Canada, offline for several hours, and a 2003 Halloween storm disrupted power for residents of Malmö, Sweden.
A Carrington-size event could create geomagnetic disturbances powerful enough to knock out Extra High Voltage (EHV) transformers, according to the report. And as society has advanced, there is significantly more at stake.
Erin is the managing editor of Advisen’s Front Page News. She has been covering property-casualty insurance since 2000. Previously, Erin served as editor-in-chief of The Standard, New England’s Insurance Weekly. Erin is based in Boston, Mass. Contact Erin at [email protected].
