The impact of space weather on the national-scale power grid and the associated economic losses

Space weather significantly impacts the Earth’s magnetic field and can severely disrupt power systems. As modern society increasingly relies on power systems, space weather effects cascade into other sectors, with severe events posing catastrophic economic risks. Research on the economic losses caused by space weather remains in its early stages, leading to potential inadequacies in risk assessment and mitigation measures and heightening the vulnerability of economic and social systems. This study employs the Dynamic Inoperability Input-Output Model to assess the GDP impact of geomagnetic storms in the United Kingdom with an occurrence rate of 1-in-11 to 1-in-1,000,000 years. We also use the Vector Autoregression model to analyze the impact of geomagnetic disturbances on the operability of the power grid of Switzerland. Results indicate that a geomagnetic "superstorm" with an occurrence rate of 1-in-10,000 to 1-in-1,000,000 years could lead to GDP losses of 7.22%-52.3%, while the total GDP loss of a Québec-scale storm would fall in the range of 3.9%-5.6%. In Switzerland, GICs negatively affect power generation, transmission, and prices, with disruptions lasting days. These findings provide a foundation for policymakers to devise strategies to mitigate the risks of extreme space weather events.