Energy Secretary implements prohibition order for bulk power entities associated with China

U.S. Secretary of Energy Dan Brouillette is implementing a prohibition order designed to reduce the risks that entities associated with China pose to the nation’s bulk-power system (BPS).

The order stems from an executive order issued by President Trump on May 1, which granted implementation authority to the Secretary of Energy. The prohibition order prohibits utilities that supply critical defense facilities (CDF) from procuring specific bulk power system electric equipment that poses an undue risk from China. It takes effect on Jan. 16, 2021.

“The bulk-power system is the backbone of our Nation’s energy infrastructure and is fundamental to our national security, the American economy, and our way of life,” Brouillette said. “It is imperative we secure the BPS against attacks and exploitation by foreign adversaries. This order is one of several steps this Administration is taking to greatly diminish the ability of our foreign adversaries to target our critical electric infrastructure.”

Specifically, the order prohibits utilities that supply CDFs at a service voltage of 69kV or above from acquiring, importing, transferring, or installing BPS electric equipment supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of China. The order applies from the point of electrical interconnection with the CDF up to the next “upstream” transmission substation.

The North American Electric Reliability Corp., or NERC, supports the move.

“The Department of Energy (DOE) prohibition order issued today is an important next step to further protect defense critical electric infrastructure from persistent threats posed by sophisticated nation-states. NERC and the Electricity Information Sharing and Analysis Center continue to take numerous proactive initiatives to address supply chain cybersecurity risk, including issuing alerts to determine the amount of foreign-manufactured equipment installed on the grid, conducting risk assessments, and sharing other pertinent information with industry. NERC will continue to work with industry, DOE, and other government partners across North America to protect grid security,” NERC officials said in a statement.