NERC outlines 5 major grid reliability risks in new report
The North American Electric Reliability Corporation (NERC) identified five significant evolving and interdependent risks to grid reliability in its 2023 ERO Reliability Risk Priorities Report.
The five chief risks, according to NERC, are energy policy, grid transformation, resilience to extreme events, security risks, and critical infrastructure interdependencies.
The report, produced every two years, examines current and projected risks to bulk power system (BPS) reliability. It was developed by NERC’s Reliability Issues Steering Committee (RISC).
The report pointed out that energy policy is a new risk profile and has broad implications as it can drive change in bulk power system (BPS) planning and operations in short time periods, affecting reliability and resilience.
“This is the best RISC report to date,” NERC Board Chair Ken DeFontes said during the recent board meeting, where it was approved. “The committee has drawn attention to some key, new risk profiles including the need to bridge important jurisdictional lines in energy policy and the interdependencies between our industry and other critical infrastructures, such as natural gas, while acknowledging the rapid pace of grid transformation and the increasing security threats. This report is important for industry as we prioritize the way to best assure the reliable operation of the North American grid.”
In addition, the report makes recommendations for NERC, the ERO Enterprise, and the industry to enhance reliability, resilience, and security in each of the five risk areas.
Regarding energy policy, NERC should continue to build on its outreach and collaboration with state commissions, the National Association of Regulatory Utility Commissioners, and with critical interdependent sectors. Communication, coordination, and collaboration with all key stakeholders should be early, consistent, and clear to bridge increasingly complex jurisdictional lines.
On grid transformation, NERC and industry should develop and include energy sufficiency approaches in planning and operating the grid.
In terms of resilience to extreme events, the ERO Enterprise should conduct special assessments of extreme event impacts, including capturing lessons learned, creating simulation models, and establishing protocols and procedures for system recovery and resiliency.
On the topic of security risks, NERC should develop guidance for industry on the best practices to mitigate the risks from cloud adoption and the use of artificial intelligence technologies.
Finally, with regard to critical infrastructure interdependencies, NERC should conduct a study to determine the percentage of available generation with on-site or firm fuel capacity in each Regional Entity.
Consistent with previous reports, collaboration is seen as fundamental to reliability. In addition, the significant interdependence between BPS reliability and other industries – exemplified by the increase in natural gas and renewable variable energy generation and simultaneous decline in nuclear, natural gas, oil, and coal-fired generation – has implications on the resource adequacy and the performance of the BPS.
“The importance of the critical infrastructures interdependencies such as electricity, natural gas, water, transportation, and communications, show potential reliability risks can be magnified when in isolation,” Soo Jin Kim, vice president of Engineering and Standards and liaison to the RISC, said.
