Solar activity and economic fundamentals: Evidence from 12 geographically disparate power grids

This study uses local (ground-based) magnetometer data as a proxy for geomagnetically induced currents (GICs) to address whether there is a space weather/electricity market relationship in 12 geographically disparate power grids: Eirgrid, the power grid that serves the Republic of Ireland; Scottish and Southern Electricity, the power grid that served northern Scotland until April 2005; Scottish Power, the power grid that served southern Scotland until April 2005; the power grid that serves the Czech Republic; E. ON Netz, the transmission system operator in central Germany; the power grid in England and Wales; the power grid in New Zealand; the power grid that serves the vast proportion of the population in Australia; ISO New England, the power grid that serves New England; PJM, a power grid that over the sample period served all or parts of Delaware, Maryland, New Jersey, Ohio, Pennsylvania, Virginia, West Virginia, and the District of Columbia; NYISO, the power grid that serves New York State; and the power grid in the Netherlands. This study tests the hypothesis that GIC levels (proxied by the time variation of local magnetic field measurements (dH/dt)) and electricity grid conditions are related using Pearson's chi-squared statistic. The metrics of power grid conditions include measures of electricity market imbalances, energy losses, congestion costs, and actions by system operators to restore grid stability. The results of the analysis indicate that real-time market conditions in these power grids are statistically related with the GIC proxy.