In the face ‘credible, specific plans’ to attack the US power grid, the government is rethinking its cyber resilience strategy.
Though 2022 finished out with a spate of physical attacks on grid infrastructure, it was also a year in which the federal government ramped up its focus on cybersecurity and the potential for hackers to remotely disrupt the flow of electricity.
Distributed energy resources “pose emerging cybersecurity challenges to the electric grid” and they should be designed with security as a “core component,” the U.S. Department of Energy concluded in an October report.
The Federal Energy Regulatory Commission is considering developing new cybersecurity rules for DERs on the bulk electric system and DOE is directing millions to support “next-generation” cybersecurity research, development, and demonstration projects.
In April, the North American Electric Reliability Corp. issued a report highlighting the “urgent need to consider technical alternatives” to the communications systems typically used by grid operators and which might not be available in the event of an attack and widespread blackout.
The growing risk is driving up costs for utilities, say experts.
Electric providers procuring cyber insurance from industry-backed insurers saw premiums rise 25% to 30% in the early part of 2022, while other types of energy companies in the commercial insurance sector have seen premiums more than double, according to data from insurance broker Marsh.
The agency announced $45 million will be available for up to 15 “next-generation” cybersecurity research, development and demonstration projects. Read the full article ➔
Cyber threats may be better addressed through mandatory standards instead of via incentives that were proposed Thursday, according to Federal Energy Regulatory Commission Chairman Richard Glick. Read the full article ➔
The agency wants to help the energy sector incorporate more cybersecurity safeguards during the design phase and better withstand attacks. Read the full article ➔
A new approach to the management of distributed energy resources will include operational standards for aggregators, but NERC says an anticipated vulnerability assessment is still almost a year away. Read the full article ➔
Distributed energy resources are expected to quadruple by 2025 and “pose emerging cybersecurity challenges to the electric grid,” according to a Department of Energy report. Read the full article ➔
Federal agencies warn the vulnerability could allow hackers to "gain full system access" to some control devices. Read the full article ➔
In the event of an attack and widespread outage, "the loss of communications would essentially halt the grid restoration process," according to a North American Electric Reliability Corp. report. Read the full article ➔
Domestic terrorists see the U.S. electric grid as a "particularly attractive target," according to a U.S. Department of Homeland Security warning, raising fears of a physical attack on critical infrastructure. Read the full article ➔
Global politics and the rise of ransomware are driving up cybersecurity insurance costs for energy companies, though experts say electric utilities have fared relatively well so far. Read the full article ➔
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“Sustained cost pressures and slower economic growth through 2023 will result in the most challenging operating environment the public power sector has faced in many years,” Kathy Masterson, Fitch senior director, said.
Nendrawahyu/Stock.adobe.com
X-energy says 67 GW from SMRs will need to be installed by 2040 in the U.S., Canada and U.K. to offset the retirement of coal and other fossil fuel plants and meet expected increases in demand.
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“Sustained cost pressures and slower economic growth through 2023 will result in the most challenging operating environment the public power sector has faced in many years,” Kathy Masterson, Fitch senior director, said.
Nendrawahyu/Stock.adobe.com
X-energy says 67 GW from SMRs will need to be installed by 2040 in the U.S., Canada and U.K. to offset the retirement of coal and other fossil fuel plants and meet expected increases in demand.
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