Energy and smart grids

IoT connectivity in power generation and distribution (smart grids) is an important use case that enables utility companies to communicate with their retail and enterprise consumers. This bidirectional communication enables demand-based variable energy production, as well as fuel and cost optimization (NIST-SMG). With smart metering, utility workers no longer need to physically visit consumer premises to obtain meter readings. This makes metering and billing more accurate and cost-efficient. Accuracy in tracking and reporting usage enables utility companies to gain better insights into customer energy usage profiles, which enables them to optimize usage and defer usage away from peak hours.

A power generation utility is a typical example of a system of systems, with highly distributed control systems and networks. Smart grids are, in general, implemented in a way that depends massively on TCP/IP networks, both wired and wireless.

In many power generation facilities around the globe, the cyber defense practices utilized today are often outdated. Inadequate use of risk management practices and security controls such as industrial firewalls with DPI capabilities and access control render these facilities exposed to cyber risks.

As critical infrastructures, the impact of a cyberattack in these facilities could potentially cascade onto other interdependent systems, such as water purification facilities, smart city traffic control systems, and so on. In Chapter 9, Real-World Case Studies in IIoT Security, the anatomy of a power grid cyberattack is discussed elaborately.

Data suggests that energy sectors are more prone to cyberattacks and more than 15% of industrial cyberattacks target the energy sector (ENER-SYMT). Stuxnet, Duqu, Shamoon, and Night Dragon are infamous security incidents that targeted the energy sector. Internet threats are one of the prime concerns in the energy sector, compounded with the ubiquity of legacy systems, which were originally designed as air-gapped systems and still remain to be fortified with security controls.