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DOE calls for increased cybersecurity measures in preparation for rapid distributed energy growth

The U.S. Department of Energy (DOE) released a long-term evaluation of the cybersecurity considerations associated with distributed energy resources (DER), such as distributed solar, storage and other clean energy technologies, and the potential risks to the electric grid over the next ten years. The study finds that while a cyberattack on today’s DER systems would have a negligible impact on grid reliability depending on grid conditions and regional DER installation and integration, the projected growth and evolution in DER deployment could pose cybersecurity challenges for future electric power grid operations if cybersecurity is not taken into consideration. The report presents strategies that DER operators and electric power entities could undertake to make the grid more secure, as well as policy recommendations for decision-makers.

“We have a strategic opportunity like we’ve never had before,” said Puesh Kumar, director of DOE’s Office of Cybersecurity, Energy Security and Emergency Response (CESER). “We can address both climate risks by deploying clean energy solutions and integrate cybersecurity into those systems from the ground-up. This is good for U.S. energy security and U.S. national security. This report is meant to start these critical conversations between the clean energy and cybersecurity communities, particularly as we begin to make historic investments in the U.S. electric grid through the Infrastructure Investment and Jobs Act (IIJA).”

“To scale up clean energy deployment, we must ensure that our electricity systems are secure and resilient to disruption,” said Alejandro Moreno, Acting Assistant Secretary for Energy Efficiency and Renewable Energy (EERE). “This crucial report lays out key cybersecurity challenges associated with wide-scale distributed energy deployment so clean energy industries and other stakeholders can work to reduce risks and protect American families.”

DOE has maintained the importance of ensuring power grid cybersecurity while achieving critical decarbonization goals essential to addressing climate change. DOE’s goal is to ensure that cybersecurity is fully engineered from ideation to deployment in relevant clean energy research, development and deployment efforts. This “cyber by design” strategy leverages opportunities early in the design lifecycle to proactively reduce cyber risk rather than attempt expensive aftermarket bolt-on efforts.

Large energy resources, like a utility-scale wind or solar plant, are connected to the transmission grid, while DER are smaller in scale and are connected to the distribution grid where residences and businesses are also connected. There are about 90 GW of DER installed today, half of which are rooftop solar systems — accounting for over 3 million systems. DER deployment is expected to quadruple by 2025 to approximately 380 GW. Each of those systems uses software and networks to integrate with electric power operations, and those systems could be hacked. Depending on systems conditions, a fleet of DER aggregated to significant size could pose a reliability challenge if under the control of an advanced, capable attacker and if cybersecurity considerations and threat mitigation strategies are ignored.

The Cybersecurity Considerations for Distributed Energy Resources on the U.S. Electric Grid report, developed by CESER and EERE, provides recommendations for the DER industry, energy sector and government to take action and secure current and future systems. The report also acknowledges the ongoing need to engage with DER industry stakeholders to develop cybersecurity standards and best practices, provide education and training and establish information sharing mechanisms. Broad industry involvement is key to developing robust DER cybersecurity standards. As outlined in the report, DOE also intends to fund research on next-generation DER defenses, including security-by-design and the recently released Cyber-Informed Engineering Strategy, to ensure security in a decarbonized grid.

Deployment of wind, solar and energy storage will help to achieve the nation’s clean energy goals, diversify the electricity supply and make the grid more resilient to outages, making investment in security for DER essential to safeguarding the nation’s energy infrastructure.

The study’s key recommendations include:

  • Adopt best practices and meet minimum security requirements. DER providers can utilize multifactor authentication encryption, and other tools to secure their devices. Many cybersecurity standards exist and can be used to develop security technologies and measures appropriate for their use.
  • Implement good governance. Design security into utility and DER systems from the beginning and make security a priority for all employees, suppliers, and customers.
  • Incentivize cyber resilience. Go beyond the standards and work to actively detect threats and adopt a zero-trust approach to verify commands and data.
  • Investment in clean energy technology needed to address climate change presents a massive opportunity to both innovate and secure our national grid simultaneously. Not only can we build new technologies that will produce power cleaner and cheaper, we can also have physical and cyber security built into the design from the start. DOE’s work on cyber-informed engineering and the Clean Energy Cyber Accelerator are meant to seize that opportunity and address considerations mentioned in this report.

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California Energy Commission to require more utility transparency into time-of-use electricity rates

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The California Energy Commission (CEC) today adopted updates to the state’s load management standards that will give consumers more timely and accurate information on electricity costs, to help them manage energy use — especially around times when demand is high.

As the state’s primary energy policy and planning agency, the CEC has statutory authority to adopt standards to help shift energy use. Load management offers California another tool to support grid reliability particularly in late afternoon and evening when demand increases as the sun goes down. Today’s action is expected to produce $243 million in net benefits over 15 years and could reduce annual peak hour electricity use by 120 GWh, equivalent to powering 20,000 average California homes for a year.

The updates will help customers take better advantage of utilities’ lower time-dependent rates so smart appliances can be used and buildings can automatically respond to more frequent rate changes that reflect electricity grid conditions. This will save consumers money by shifting usage to times of cheaper or abundant electricity. In addition, a better-balanced grid slows the rise of electricity costs, strengthens the grid, reduces the need for more fossil fuel plants and avoids electricity transmission and distribution congestion.

“This update is a huge leap into the 21st century, using digital approaches to unlock benefits for consumers by enabling them to automate their electricity use around cheaper rates and changing grid conditions,” said Commissioner Andrew McAllister. “Automated load management reduces energy bills, makes better use of abundant renewable energy resources available during the day, and strengthens grid reliability.”

Under the updated standards, which will take effect April 1, 2023, Pacific Gas and Electric Company, Southern California Edison Company, Sacramento Municipal Utility District, San Diego Gas & Electric, Los Angeles Water and Power, and large community choice aggregators will be required to make the following improvements:

  • Develop retail electricity rates that change at least hourly to reflect grid costs and greenhouse gas emissions and are approved by their governing board.
  • Maintain up-to-date rates in a database called the Market Informed Demand Automation Server (MIDAS), which will provide a central repository for all rate information.
  • Educate customers about time-dependent rates and automation technologies to encourage their use.

The changes help advance energy equity by introducing fairer compensation mechanisms, creating bill savings for customers with flat loads in disadvantaged communities or who are able to shift usage to when electricity is cheaper, and lowering energy costs for all customers by reducing peak electricity demand.

Since 1978, the CEC encouraged load management through utility air conditioner cycling programs that automatically reduce use at commercial or industrial sites, for example, during emergency summer peak loads. As technology has advanced over time, more appliances such as thermostats, pool pumps and residential water heaters have been automated to reduce use or shift time of use from high-demand hours, in response to signals from utilities and energy aggregators.

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EU produces record wind and solar energy as it shirks Russian gas

LondonCNN —  Wind and solar power have made up a record 24% of the European Union’s electricity mix since Russia launched its war on Ukraine, a new report says, a boost that has also helped the bloc battle soaring inflation.

The growth in renewable power capacity has saved the 27-nation bloc €99 billion ($97 billion) in avoided gas imports between March and September, which is €11 billion ($10.8 billion) more when compared with the same period from last year, according to the report published by climate think tanks E3G and Ember.

The boost in renewables comes as Europe tries to wean itself off Russian gas, as Moscow reduces, even cuts off, European nations’ energy supplies to gain leverage in the conflict. The war has forced the the EU to confront its costly dependence on Russian gas, which in 2020 accounted for 41% of the EU’s imports of the fossil fuel.

Wind and solar energy accounted for a quarter of EU electricity since the start of the war.
Wind and solar energy accounted for a quarter of EU electricity since the start of the war.

Chris Ratcliffe/Bloomberg/Getty Images

Nineteen of the EU’s 27 member states have achieved record wind and solar generation since March, the report found.

Poland had the greatest percentage year-on-year increase of 48.5%, while Spain recorded the greatest absolute generation increase with 7.4 terawatt hours (TWh). Spain’s renewable generation alone avoided €1.7 billion ($1.7 billion) in imported gas costs.

The think tanks warned, however, that there was still a long way to go in reaching the bloc’s renewables potential. Fossil gas still made up around 20% of the EU’s electricity in the same period, at a cost of around €82 billion ($80.7 billion).

“Wind and solar are already helping European citizens,” Chris Rosslowe, senior analyst at Ember, said in a statement. “But the future potential is even greater.”

‘More renewables, less inflation’

Wind and solar generated 345 TWh of electricity across the EU from March to September this year – a record year-on-year increase of 13%. Total renewable capacity would have been far higher, had hydroelectricity not been down 21% due to droughts this summer, which scientists say have been made worse by the human-caused climate crisis.

The report’s key message is simply: “More renewables, less inflation.”

Nonetheless, European energy prices are still high. Russia’s gas restrictions to Europe have resulted in “the largest inflationary shocks in Europe since World War II, beating that of the oil crisis in the 1970s,” the report said. In September 2022, energy costs were up 40.8% on last year, accounting for 36% of the EU’s overall inflation figures.

Gas poured into the atmosphere after the attacks on the Nord Stream pipelines in September.
Gas poured into the atmosphere after the attacks on the Nord Stream pipelines in September.

Some EU countries have announced fiscal support packages worth hundreds of billions of dollars to try to limit this inflation, largely through subsidizing the use of fossil fuels for heating – but many businesses and households are still left with bills they cannot afford to pay.

The report warns that governments will be unable to sustain such costly programs “to compensate for high fossil energy prices over a long period of time.”

The report called for more investment in renewables to prepare for the coming winters.
The report called for more investment in renewables to prepare for the coming winters.

Andreas Rentz/Getty Images

The EU has managed to fill its gas storage containers to get through the winter, but questions have been raised over how the bloc will fill the gap the following warming season. According to the report’s authors, this makes it “even more important now to shift the focus to measures that go beyond the 2022/23 winter.”

The ramp-up in renewables followed the European Commission “RePowerEU” proposal in May, which increased the renewables target from 40% of the total energy mix by 2030 to 45%.

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