The flooding, loss of life, and devastation that the country witnessed over the last two weeks following Hurricanes Helene and Milton are just the most recent examples of the short and long-term damage that can result from a hurricane. There are still households without power in North Carolina and the state will likely see a call for an audit of the grid and its response to events such as this.
Last spring, the National Hurricane Center (NHC) predicted an above normal 2024 Atlantic hurricane season. Furthermore, stating that this year would set records with the number of tropical storms and major hurricanes predicted to hit the United States[1]. This increase in magnitude is due to the transition from El Nino to La Nina conditions, which enhances hurricane activity in the Atlantic by providing ample oceanic heat and moisture. Overall, an active hurricane season, can dramatically impact the energy market in the affected regions.
Recently, the United States was hit by Category 4 Hurricane Helene across the southeastern and southern Appalachia quadrants. On September 26th, this storm made landfall and brought on 140 mph winds and torrential rain that caused flooding. Additionally, when this hurricane make landfall, it led to widespread power outages as infrastructure was damaged.
When a hurricane such as Helene makes landfall, it can destroy infrastructure and cause widespread power outages. Once this occurs, the consumption of power usage significantly decreases across the grid as it is not readily available. These outages greatly affect the supply of electricity, resulting in a loss of power to homes, businesses, and other facilities.
Aside from the immediate power outages, hurricanes have long-term impacts on energy infrastructure. For example, an area that is often affected by hurricanes must invest in technology that increases infrastructure resilience. This often leads to higher energy costs to offset the additional costs needed to support the technology. Moreover, the uncertainty of hurricane season makes it challenging for energy markets to accurately predict prices. This in-turn can lead to fluctuation and volatility in energy prices.
Hurricanes can also disrupt energy production, especially in areas that rely heavily on offshore energy resources. More specifically, strong winds can damage infrastructure and delay exports that are fundamental to the United States energy market. Overall, natural disasters such as a hurricane can greatly impact the energy market within the United States.
[1] NOAA predicts above normal 2024 Atlantic hurricane season (National Oceanic and Atmospheric Administration, 2024),