The shift towards renewables, electrification and sector coupling is making it more difficult for transmission system operators (TSOs) globally to manage their power grids.[1] To address the new challenges in grid operations and planning, TSOs are increasingly digitizing, working with artificial intelligence (AI) and incorporating smaller energy systems into their optimization efforts.[2]

A good example of this is Germany’s Redispatch 3.0 program, which coordinates the output of distributed energy resources with consumer demand to prevent grid problems. Some TSOs are considering regional and national energy flexibility platforms. These platforms can create markets for new reserve products, helping to maintain grid stability.

Building on the concept of integrating smaller systems, virtual power plants (VPPs) are a promising variation. VPPs aggregate distributed energy resources and act as a single large power plant, offering a range of grid stabilization products through market-driven mechanisms.

Increased vulnerability with decentralization

There’s a trade-off with integrating more decentralized energy assets and demand-side flexibility into the TSO calculus. While it offers flexibility and capacity, it also creates a much bigger target for cyberattacks via the OT/IT convergence required to operate.[3] Traditional TSO security methods like physically isolating OT and IT systems (air-gapping) or their communication are no longer viable. They’ve also proven vulnerable and impractical to maintain in today’s connected world.[4]

Additionally, the manipulation and tampering of data streams in the energy system can cause significant damage to equipment and people, nullify basic security infrastructure, and potentially cause total supply blackouts. From a data security standpoint, blockchain technologies are a good first step, enhancing data security through the immutability of data once it is on the blockchain. But they provide no inherent protection against malicious data coming from internal and external sources.

The security imperative

Security must be prioritized alongside technological advancements and market-driven initiatives. While innovation can improve protection, cybercriminals are constantly adapting. Robust security practices are required that can evolve alongside these threats.

TSOs are the backbone of our power grids. They oversee the high-voltage networks that carry electricity across vast regions, ensuring national (and sometimes international) energy security. Given the critical nature of their role, shouldn’t their future data and cybersecurity be equally robust?

Time to fortify the defenses

The emerging threat landscape demands a reevaluation of data security strategies. Malicious actors pose a real threat, and TSOs need:

For enhanced security against malicious actors, TSOs need to integrate zero-trust principles into the design and development of their converged OT/IT data infrastructure and systems. Standardization in this area is currently being developed by the Trusted Energy Interoperability Alliance (TEIA),[6] initiated by several energy majors.

Shifting the security focus: protecting data everywhere

Traditional security concentrates on safeguarding physical assets, computer systems, and digital communication channels. But what if we could secure the data itself, no matter where it originates or what infrastructure it travels across?

This new approach can be based on XPN, leveraging zero-trust principles to enable affordable and effortless device-to-device, device-to-repository/cloud and cloud-to-device communication, as well as remote data and device access. This significantly enhances the security of on-premise data and makes it possible to use relatively unsecured data from decentralized assets.

TSOs upgrading their defenses

Driven by the evolution of the energy system, TSOs must implement robust end-to-end data and cyber security technologies to safeguard against attacks and ensure the integrity and reliability of the transmission network. This requires a common data trust model with security controls that are maintained at all times. TSOs must combine security technologies, harden their defense mechanisms and increase the tamper resistance of critical systems.

References

[1] MIT Energy Initiative, The future of the electric grid. https://energy.mit.edu/research/future-electric-grid/

[2] Bundesnetzagentur, press release, June 16, 2023. https://www.bundesnetzagentur.de/SharedDocs/Pressemitteilungen/EN/2023/20230616_Sperrfrist.html

[3] Deloitte Insights, Managing cyber risk in the electric power sector. https://www2.deloitte.com/us/en/insights/industry/power-and-utilities/cyber-risk-electric-power-sector.html

[4] CISA, Sector Spotlight: Cyber-Physical Security Considerations for the Electricity Sub-Sector. https://www.cisa.gov/sites/default/files/publications/Sector%20Spotlight%20Cyber-Physical%20Security%20Considerations%20Electricity%20Sub-Sector%20508%20compliant.pdf

[5] Intertrust, XPN FAQ. https://www.intertrust.com/platform/xpn-faq/

[6] Trusted Energy Interoperability Alliance (TEIA). https://www.trusted-energy.org