A Method to estimate the economy-wide consequences of widespread, long duration electric power interruptions

Abstract We partnered with a utility in the U.S. state of Illinois to develop and pilot an approach to estimate the economic impacts of widespread, long duration (WLD) power interruptions. We surveyed their customers about hypothetical blackouts, identifying and classifying mitigating/resilience beh...

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Main Authors: Ian Sue Wing, Peter H. Larsen, Juan Pablo Carvallo, Alan Sanstad, Dan Wei, Adam Rose, Sunhee Baik, Jeremy Smith, Christopher Ramee, Ridge Peterson
Format: Article
Language:English
Published: Nature Portfolio 2025-04-01
Series:Nature Communications
Online Access:https://doi.org/10.1038/s41467-025-58537-4
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author Ian Sue Wing
Peter H. Larsen
Juan Pablo Carvallo
Alan Sanstad
Dan Wei
Adam Rose
Sunhee Baik
Jeremy Smith
Christopher Ramee
Ridge Peterson
author_facet Ian Sue Wing
Peter H. Larsen
Juan Pablo Carvallo
Alan Sanstad
Dan Wei
Adam Rose
Sunhee Baik
Jeremy Smith
Christopher Ramee
Ridge Peterson
author_sort Ian Sue Wing
collection DOAJ
description Abstract We partnered with a utility in the U.S. state of Illinois to develop and pilot an approach to estimate the economic impacts of widespread, long duration (WLD) power interruptions. We surveyed their customers about hypothetical blackouts, identifying and classifying mitigating/resilience behaviors and quantifying their costs and benefits. Survey results are scaled up to the broader regional economy, and used to drive a computational general equilibrium (CGE) simulation of the effects of power interruptions and attendant customer responses (e.g., relocation, backup generation). Impacts are severe: 1-, 3-, and 14-day interruptions reduce the utility service area’s three-month GDP by $1.8 Bn (1.3%), $3.7 Bn (2.6%) and $15.2 Bn (10.4%), respectively, with losses driven overwhelmingly by disequilibrium responses to shortages as opposed to price signals (71%–88%). Doubling backup power penetration moderates GDP losses by 11%–14%, and is relatively least beneficial during the longest interruption duration. Results highlight previously unquantified economic losses that can potentially be avoided by investments in power system resilience.
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issn 2041-1723
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publishDate 2025-04-01
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spelling doaj-art-7b2f9f528c054cfbbc340b2d9d867de92025-08-20T03:06:54ZengNature PortfolioNature Communications2041-17232025-04-0116111310.1038/s41467-025-58537-4A Method to estimate the economy-wide consequences of widespread, long duration electric power interruptionsIan Sue Wing0Peter H. Larsen1Juan Pablo Carvallo2Alan Sanstad3Dan Wei4Adam Rose5Sunhee Baik6Jeremy Smith7Christopher Ramee8Ridge Peterson9Boston UniversityLawrence Berkeley National LaboratoryLawrence Berkeley National LaboratoryLawrence Berkeley National LaboratoryUniversity of Southern CaliforniaUniversity of Southern CaliforniaLawrence Berkeley National LaboratoryCalifornia Energy CommissionResource Innovations Inc.Resource Innovations Inc.Abstract We partnered with a utility in the U.S. state of Illinois to develop and pilot an approach to estimate the economic impacts of widespread, long duration (WLD) power interruptions. We surveyed their customers about hypothetical blackouts, identifying and classifying mitigating/resilience behaviors and quantifying their costs and benefits. Survey results are scaled up to the broader regional economy, and used to drive a computational general equilibrium (CGE) simulation of the effects of power interruptions and attendant customer responses (e.g., relocation, backup generation). Impacts are severe: 1-, 3-, and 14-day interruptions reduce the utility service area’s three-month GDP by $1.8 Bn (1.3%), $3.7 Bn (2.6%) and $15.2 Bn (10.4%), respectively, with losses driven overwhelmingly by disequilibrium responses to shortages as opposed to price signals (71%–88%). Doubling backup power penetration moderates GDP losses by 11%–14%, and is relatively least beneficial during the longest interruption duration. Results highlight previously unquantified economic losses that can potentially be avoided by investments in power system resilience.https://doi.org/10.1038/s41467-025-58537-4
spellingShingle Ian Sue Wing
Peter H. Larsen
Juan Pablo Carvallo
Alan Sanstad
Dan Wei
Adam Rose
Sunhee Baik
Jeremy Smith
Christopher Ramee
Ridge Peterson
A Method to estimate the economy-wide consequences of widespread, long duration electric power interruptions
Nature Communications
title A Method to estimate the economy-wide consequences of widespread, long duration electric power interruptions
title_full A Method to estimate the economy-wide consequences of widespread, long duration electric power interruptions
title_fullStr A Method to estimate the economy-wide consequences of widespread, long duration electric power interruptions
title_full_unstemmed A Method to estimate the economy-wide consequences of widespread, long duration electric power interruptions
title_short A Method to estimate the economy-wide consequences of widespread, long duration electric power interruptions
title_sort method to estimate the economy wide consequences of widespread long duration electric power interruptions
url https://doi.org/10.1038/s41467-025-58537-4
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