Preventing cyber threats, fuel source diversity key to energy security
WASHINGTON – The U.S. power industry needs to be on top of cybersecurity threats because so much of the country’s economic health is dependent upon a reliable power grid, the head of a leading trade association for electric utilities said on Wednesday.
“Electricity is 5 percent of the gross domestic product. I call it the first 5 percent because you wouldn’t have a gross domestic product without electricity … this is also why we put such an incredible emphasis on cybersecurity,” said Edison Electric Institute (EEI) President Tom Kuhn at a Feb. 27 panel on energy and national security hosted by the American Association of Blacks in Energy.
EEI and its member investor-owned electric companies have been working with the federal government to get cybersecurity technology from the National Laboratories, and they share information with U.S. defense agencies.
The electric industry also works with the National Institute of Standards and Technology, the North American Electric Reliability Corporation, and federal intelligence and law enforcement agencies to strengthen the energy grid and protect it from threats. In addition, the Electricity Subsector Coordinating Council (ESCC) serves as the principal liaison between the federal government and the electric power sector, and aims to coordinate efforts to prepare for incidents that could impact national security or public safety and threaten critical infrastructure.
Utilities also conduct regular exercises to prepare against potential cyber attacks, Kuhn said.
While hacking is a persistent threat, “the main thing that we’re worried about is the malware that gets in the system, that brings down the system. That’s a whole different ballgame,” Kuhn said.
Another way to address national security and energy is to ensure a diversity of fuel sources for electricity and support continued investment to the power grid, Kuhn and other panelists said.
“Electricity uses it all and it’s great to have that mix“ of fuel sources, Kuhn said. “This has helped us keep [electricity] prices low.”
Fellow panelists Abby Ross Hopper, president of the Solar Energy Industries Association (SEIA), called for the power industry to define what attributes to prioritize, such as affordability or sustainability, while also focusing less on what fuel source supplies the electricity.
The power industry needs to “figure out what kind of energy infrastructure we need and send the right price signals to value those attributes. And then let us all compete. And whoever has the lowest price is going to win,” said Hopper of SEIA, the national trade association for the U.S. solar energy industry.
Her sentiments were echoed by Tom Kiernan, chief executive officer for the American Wind Energy Association. He said the power industry can benefit from a healthy competition between fuel sources as grid operators determine their needs, which could include assistance on cold starts.
“Let’s make a market and let solar and wind and coal and nuclear to compete. We’re game for that kind of competition. And that’s what we’re encouraging the grid operators and Congress [to do], to make sure it’s a competitive opportunity,” Kiernan said.
Furthermore, government framework and policy can also help set the right inter-regional planning that can respond to power grid and transmission needs, he said.
But American Petroleum Institute President Mike Sommers cautioned against too much federal involvement, although he supported fuel source diversification.
“We recognize that America wants all of the above. Where we get nervous is the government making all these decisions” that consumers should be setting, Sommers said.
Sommers also said domestic shale and natural gas production has enabled U.S. foreign policy to be more independent of foreign interest, as seen in current U.S. dealings with oil-producing Venezuela.
“What this industry has done has provided flexibility for the United States government as it relates to energy needs for American consumers,” Sommers said.
