Smart meters, smart grids, smart distributed energy resources (DERs), smart energy management, and demand response technology share a common thread: all of these systems communicate with other parts of an electrical network, including generating, using, and sharing large quantities of data. As our electric infrastructure and data becomes more distributed and complex, the need for greater cybersecurity protections increases.

The potential market for cybersecurity in the energy sector has not gone unnoticed, with reports indicating that the cloud security market in the energy sector is expected to grow at a compounded annual rate of 11.2% from 2019 to 2024.

The electric industry must do more to detect, counteract, and overcome cyber threats as connectivity increases. Most cybersecurity methods employed throughout the smart grid sector rely on perimeter defenses. However, it is recommended that internal defenses be created, in addition to perimeter defenses, as internal defenses are designed to reveal intruders and provide false information in the event of a cyber threat.

As with any sector, it remains impractical to use only a single security approach across the entire smart grid sector.