1. Cybersecurity, an important element of stability for the energy sector
Dr Fergal McNamara
Head of Unit – Distribution System Operation
Public Hearing on the ‘Cybersecurity Act’, EESC
9 January 2018
@HOU_DSO
@EURELECTRIC
#itsElectric

2. EURELECTRIC Who we are

3. Society is highly dependant on critical services
Society is highly dependant on critical services..and the power grid stands out

4. DSOs are key facilitators in todays energy system
€ billion
2400
investment in networks this decade
distribution companies
260 million
connected customers
Moreover, the number of potential points for monitoring and control, the substations and control points that are the nodes in the network, exceed 4-million substations in the electricity network alone. Each monitoring and control point is a potentially open door for a cyber attack.
10 million km
200 million
of power lines across Europe
smart meters installed by 2020

5. More connectivity and interfaces potentially more vulnerability
DSOs grid management is increasingly digitalised with unpreceded complexity: think smart grids roll out, advanced metering applications, prosumers, etc.

6. The threat is real
In the last decade, there were on average nearly 400 serious attacks on energy infrastructure annually worldwide but only well under 200 attacks prior to 2000
Source: Energy Infrastructure Attack Database
Prominent incidents (and learning curves):
Ukraine, December Ukraine, December 2016
3 DSOs compromised Only 1 DSO affected, swift system recovery
people affected
1-6 hours to recover
USA, June 2013
‘Ugly Gorilla’ hack into utility gas networks discovered by FBI
Confidential information such as pipeline schematics have been copied
Intruder already gained access to systems that regulate the flow of natural gas
It should be noted that hackers broke into the Ukrainian networks nine months before the outage and five out of the eight attacked power distribution companies have been able to detect and mitigate the incident before it had effects on the main system. Hence, intrusion detection systems and processes are the cornerstone of cyber security when it comes to network operators.

7. What needs to be done from a DSO perspective
DSOs are already addressing the challenge in line with the NIS Directive, GDPR revision and upcoming ‘Cybersecurity act’
Energy specific regulatory tools in the making:
A future ‘Network Code’ on cyber security – directly applicable EU Regulation with four key objectives:
Developing a ‘EU Cybersecurity Maturity Framework’ – bringing all System operators to a minimum security level
Supply chain management – baseline security requirements for products and services in line with relevant IEC standards
Early warning system for cyber threats – in line and adding on the current reporting system of the NIS Directive
Tackling aspects of cross-border risk management – taking into account the interconnectivity of our power system
Network code on cyber security scope is an outcome of a dedicated Smart Grid Task Force Expert group which is initiated by the European Commission and set up in spring 2017

8. What needs to be done from a DSO perspective II
Development focus:
People & skills
Technology
Procedures
Key Security domains:
Identify & protect
Monitor & detect
Respond & recover
Take into account specificities of energy networks:
System operators are regulated entities dealing with critical infrastructures
Necessary expenditure for cyber security investments and organisational transformation can be potentially costly
European and National legislation should work as an enabler if the Regulator recognises the need of an investment to enhance cybersecurity
To achieve a high level of cyber security across the electrical grid at European level, network operators should have a well-structured cyber security strategy, based on risk assessment schemes. They should also develop a breach detection and response capability to minimise the damage that a cyber attack might cause. Moreover, its not only about the right technology and procedures in place, but striving towards a cyber security culture. This can be realised only with the support of European and National authorities, and by making cyber security a top priority at the highest level of management, facilitating its inclusion in the company’s strategy and enabling proper investment to allow sufficient resources and awareness at all levels.

9. Eurelectric work on this subject
Dedicated report on Smart Grid Cyber Security
Addressing cyber security threats as a pan-European and cross-industrial challenge
Key topics:
Sector specific threats and challenges
Current and potential legislative frameworks
National & European initiatives on Smart Grid Cyber Security
Guidelines for enhancing cyber security capabilities

10. Not only threats but also opportunities The digitalisation trend produces an unprecedented amount of ‘big data’ in the energy sector and beyond
Used data
Dark data
Data that is
captured
but never utilised
To give it all a positive spin
Source: IBM

11. Not only threats but also opportunities II Positive example: Tesco Ireland
Tesco invested strongly in monitoring infrastructure of their stores to make them
more energy efficient
The collected amount of data was vast
– a dedicated analysis helped to untap a considerable energy saving potential
The same is true for grids: example of dynamic line rating and related efficiency gains