IDEAS Insights Strengthening Energy Reliability | Page 3

One of the most severe problems posed to infrastructure and cities during natural
disasters is power outages. Loss of electricity in large areas for long periods becomes
hugely detrimental to residents’ wellbeing, leaving homes without basic utilities such
as heating and cooking. Moreover, power outages become extremely costly to the
economy and damaging for industry, IT-based businesses and hospitals, often leaving
small business owners’ livelihoods at risk. Unreliable energy supplies can severely
hinder development; it’s estimated the U.S economy loses up $160 billion every year
due to blackouts. [1]
The causes of blackouts vary: both unpredicted surges in usage (leading to demand
outstripping supply) and insufficient infrastructure are frequent triggers. One of the
most common and devastating causes of power outages, however, is natural disasters.
During 2017, Hurricanes Harvey, Irma and Maria ravaged large swathes of The
Caribbean, Puerto Rico, Texas and Florida. Two weeks after Hurricane Maria, 90% of
Puerto Ricans remained without power, destroying an estimated minimum $20 billion
of economic value. [2]
In another recent example, South Asia faced some of its worst flooding in years in 2017,
leaving millions without power. [3] With climate change accelerating, extreme weather
and natural disasters are predicted to increase in both intensity and in frequency. As
governments seek to prevent and mitigate these large-scale power outages, they look
towards battery power storage as a solution.
Over the last 20 years, battery capacity has more than doubled, revolutionising energy
storage. [4] Companies such as Tesla, Nissan and Panasonic are racing to create larger
and more powerful batteries for both use in vehicles and homes. Having batteries to
store energy locally inside homes eliminates the problem of failing power lines that
would otherwise supply the energy. The Powerwall is Tesla’s version of a home battery,
designed for domestic storage of power from the grid or from local external sources
such as solar panels or wind turbines. Its main function is to ease customers’ reliance
on the national grid, whilst providing backup power during blackouts. The Tesla
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