Can't the power grid's transformers be protected with spark-gaps ? used as over-voltage protections ?
Yes, they can and they are. In fact, most grid components have several layers of protection devices: spark gaps, fuses, breakers, etc.
no, they aren't. that's the problem.
you have a big loop formed by 200 foot tall wires and the ground. the neutral is grounded on both sides.
geomagnetically induced DC current is on the order of 0-10 volts per mile. this is enough to put triple digit DC amps on top of the ac current, which is on the order of four digits. so its not electrically significant.
the problem is the dc current partly saturates the transformer, and the ac power lost in the core melts things down. the actual current doesn't have to increase much.
furthermore, because these transformers are so efficient, that the partly saturated transformers are often drawing asymetric currents which are naturally present when the transformer is initially turned on.. so guess what.. the filters are already set up to ignore that current.
Additionally many transmission lines have no way of sensing this current because they use ac current transformers on the hot lines, not dc current ct's on the neutral.
so, all you have to do to prevent the transformers from saturating is to put large capacitors in series with the neutral on one or both sides of the transmission lines.
this is estimated to cost 50,000 dollars for each of the biggest 1000 transformers. (because they have to pay an engineer to figure out how big it needs to be lol)
the actual capacitors are only a few thousands.. maybe 10,000 USD for the largest ones.
the utility won't pay for this, they want congress to pay for it. but it is that simple.
you don't need spark gaps across the capacitor (its impedance is lower than a lightning bolt), but a resistor is sufficient.
the capacitor and the resistor have to be able to handle 10 volts dc per mile of transmission line. maybe double that for a once in 1000 year event.