To combat climate change, it is crucial to enhance energy efficiency and reduce carbon emissions worldwide. As the global demand for electricity is increasing by 3.4% annually, a larger portion of our electricity must be sourced from renewable energy sources.
The traditional electrical grid model cannot accommodate a larger share of renewable energy sources, but smart grids can. However, the smart grid, an electricity network that uses technologies to track energy consumption and drive energy efficiency, requires more data to flow through an increasing number of connection points and devices. As highlighted in our new report, Grid 2.0: Advancing energy’s digital frontier, this has major implications for system security.
In short, the smart grid is more vulnerable to cyber-attacks. Here, Stephen Magennis, Global Head of E&U at Expleo, outlines why smart grids are more vulnerable to cyber-attacks, what security measures can be implemented to help prevent an attack, and a five-step incident response plan.
What is a cyber-attack?
A cyber-attack is a malicious attempt by an individual, a group or government to access a computer system or network to obtain, change or destroy sensitive information, to extort money from users or to disrupt operations.
They can take different forms. Malware attacks can infiltrate a network to steal data or disrupt operations, while phishing attacks can target utility employees for sensitive information. Distributed Denial-of-Service (DDoS) attacks can overwhelm a grid network, prevent user access and lead to outages. Advanced Persistent Threats (APTs) are often associated with nation states or organised crime groups and are a way to mine data undetected.
Energy and utility infrastructure is vulnerable to cyber-attacks. For example, an attempt could be made to encrypt a power station’s control systems. Under the threat of mass blackouts, the cyber-attacker could demand a ransom for decryption.
Why are smart grids vulnerable to cyber-attacks?
The many devices and connections required for real-time data flow in smart grids increases the potential attack surface and complexity. As a result, smart grids are more vulnerable to security breaches. Other vulnerabilities include:
- Legacy systems integration
Smart grids integrate both new and older systems, but these legacy components may not be designed with cybersecurity in mind. - Remote access
With multiple remote parties monitoring and controlling parts of the smart grid, the number of entry points for attackers increase. - Distributed Energy Resources (DERs) and smart meters
DERs typically have less robust security measures than traditional grid infrastructure, making them susceptible to attacks, including the exploitation of communication protocols. - Supply chain risks
When products and software come from multiple sources, there is greater risk that one system component can have an inherent security weakness that can be exploited. - Human error
Most security breaches occur due to poor password management or falling victim to phishing scams.
Regulatory frameworks and standards have been developed to secure critical energy and utility assets. Compliance is a legal obligation and strategic necessity, safeguarding smart grids from cyber-threats. However, different regulations apply across regions, so multi-national energy and utility companies must ensure consistent security practices. If they are not consistent, it will be harder to implement a robust global cybersecurity strategy.
Cybersecurity measures and protection strategies for smart grids
Operators can protect data integrity and power availability and strengthen security against the type of threats we have mentioned. To increase the resilience, reliability and security of smart grids, we recommend implementing a series of security measures. These are:
- Firewalls
A firewall is a security device for computer networks. Firewalls are necessary to control access between trusted and non-trusted networks as they will help prevent unauthorised entry to the smart grid, reducing the risk of malicious traffic. - Intrusion Detection Systems (IDS)
An IDS is a tool that continuously monitors network traffic and system behaviour, alerting operators to suspicious patterns or anomalies that may indicate a potential breach or attack. - Encryption
By encrypting data, only authorised individuals have access to it. It is crucial to protect sensitive data transmitted across smart grid components by restricting access to select individuals. This lowers the risk of a data breach or the misuse of data. - Regular software updates
Regular software updates unlock the latest security updates and security patches that fix flaws or vulnerabilities in a system and prevents attackers from exploiting them. - Employee training
A ‘human firewall’ results from educating employees about cyber-threats and cybersecurity best practice. - Network segmentation
When the smart grid is divided into smaller, isolated networks, this limits the fallout of a security breach by preventing attackers from easily moving laterally across the system. - Access control
By implementing access control policies, only authorised individuals can access critical systems and data. This reduces the risk of unauthorised access and potential damage. - Incident response planning
A defined incident response plan enables security teams to respond quickly and effectively to cyber-attacks, minimising damage and downtime.
Your five-step incident response plan
If a cyber-attack does occur, an incident response plan is essential to address and mitigate the impact on the smart grid. We’ve outlined a five-step plan below.
- Step 1: Preparation
Regularly update and test response plans, including drills and automated threat simulations. Train employees across all levels on their role in the event of a cybersecurity incident. - Step 2: Detection and analysis
Use advanced monitoring systems, AI and machine learning to detect anomalies and threats early. - Step 3: Containment, eradication and recovery
Define clear protocols for isolating affected smart grid segments, removing threats and restoring operations. Ensure back-up systems are ready for seamless recovery. - Step 4: Post-incident activity
Review and improve response strategies based on the lessons learned. Incorporate these insights into employee training and future drills. - Step 5: Real-world application
Prepare and share case studies that showcase successful incident response plans. These can be used to raise awareness and educate teams. For example, a case study could highlight how a utility limited damage from a ransomware attack.
Secure your critical infrastructure
Secure your energy network so it remains resilient against evolving cybersecurity threats. Expleo has a track record in security assessment, threat modelling and incident response planning for critical network infrastructure. This includes smart grids and connected systems.
Regulatory frameworks
US
NERC CIP Standards
Mandates security controls to protect CNI, specifically in the energy sector.
NIST Cybersecurity Framework
Provides a voluntary framework for managing and reducing cybersecurity risks, widely adopted across the energy and utility industries.
FERC Regulations
Enforces compliance with mandatory cybersecurity standards, including the NERC CIP, so energy providers adhere to best practices in CNI protection
UK
NCSC Guidance
Offers support and best practices for securing CNI, including advice on protecting smart grid components from cyber-threats.
NIS Regulations
The NIS Regulations, compliance with which is monitored by the UK government, require energy providers, to implement appropriate security measures.
Smart Energy Code (SEC)
Governs the smart metering system in the UK, ensuring that all participants adhere to security requirements mandating encryption and other cybersecurity measures to protect consumer data and network integrity.
EU
EU NIS Directive
Sets out measures to ensure the security of network and information systems across the EU, including those in the energy sector with a focus on cross-border collaboration. It is supported by ENISA which helps member states improve cybersecurity capabilities and harmonise standards across the EU.
GDPR
Requires organisations to protect personal data, directly impacting cybersecurity practices within the energy sector.
CIP Directive
Enhances the protection of CNI, including energy sectors, by establishing common security measures across the EU.
Security practices across jurisdictions is crucial to maintain robust cybersecurity across global operations.
To find out how Expleo can support smart data-driven energy and utilities solutions, contact us today.
Grid 2.0: Advancing energy’s digital frontier
How the smart grid provides opportunities for innovation and efficiency in energy distribution
