The White House unveils a plan to safeguard renewable energy infrastructure

The renewable energy sector has continued to lag this year, with high interest rates and a weaker global economy acting as a drag on clean energy action. The iShares Global Clean Energy ETF (NASDAQ:ICLN) is deep in the red, returning -18.2% year-to-date, compared to a 6.6% gain for its fossil fuel peer, Energy Select Sector SPDR Fund (NYSEARCA:XLE) and 12.1% return by S&P 500. Still, the clean energy sector continues to be a money magnet: last month, the International Energy Association (IEA) reported that global spending on clean energy technology infrastructure is on track to reach $2 trillion in 2024, double the amount spent on fossil fuels.

The energy transition is a fast-moving domino that has companies from a wide spectrum scrambling to keep up the same momentum with constant improvements in technology and infrastructure. But security is the exception.

According to DNV’s Cyber ​​Priority research89% of the 601 energy professionals surveyed believe that cybersecurity is a top priority for energy transformation. A particularly pressing challenge is securing operational technology (OT), the control systems that manage, monitor, automate and control industrial operations. This vulnerability was brought to light after the Russian invasion of Ukraine, which highlighted the vulnerabilities of such infrastructure.

And now, the Biden administration is moving to protect clean energy grids from cyberattacks. According to the White House, the convergence of network-based information technology (IT) and physical process management (OT) operational technology elevates the centrality of software to this transition.

The administration has highlighted five cyber technologies it will work on to help protect the clean energy infrastructure from potential cyber attacks, namely:

• Batteries and battery management systems– properly architected and secured software, both firmware and cloud-based, batteries will enable an ambitious energy future less constrained by the time or geography of electricity production.
• Inverter controls and power conversion equipment–modern smart inverters, equipped with advanced computing and networking capabilities and paired with robust cyber security, will support more sophisticated grid services while promoting greater resiliency and lower operating costs for various energy assets.
• Distributed control systems–Secure-by-design management software will enable better operation and coordination of hundreds of thousands of distributed energy control systems, including virtual power plants, community microgrids and other innovative energy systems, while integrating advanced energy control technologies cyber security
• Energy Management Systems for Buildings–advanced building energy management systems using software-defined resource management, including the Internet of Things and computerized facility controls
• Electric Vehicles (EV) and Electric Vehicle Power Equipment (EVSE)–design electric vehicles and associated grid-integrated charging equipment (EVSE) powered by secure and sophisticated distributed energy control systems. These will enable smart charging, where utilities or consumers can manage electric vehicle charging schedules to optimize grid load, reduce energy costs or maximize alignment with clean energy sources.

Securing the USA. power systems against cyber attacks seems to be a problem. In 2021, Colonial Pipeline, the nation’s largest pipeline system for refined petroleum products, was forced to shut down for five days after a massive ransomware attack . The shutdown led to gas shortages, traffic jams outside gas stations and higher prices at the pump. The Department of Homeland Security also warned of cyber threats posed by the People’s Republic of China (PRC). One guidance document Published in June, the department said it was making it a top priority for protecting critical infrastructure by 2025, noting that a PRC-sponsored Volt Typhoon cyber group has “compromised the IT environments of organizations with multiple critical infrastructuress” including energy and transport systems.

The Biden administration has been hailed as the most pro-renewables in US history thanks to landmark legislation, including the $1 trillion Infrastructure Investment and Jobs Act (IIJA) signed in November 2021 and the Inflation Reduction Act (IRA) from August 2022. Last November, President Joe Biden announced the locations seven regional hydrogen hubs which will receive $7 billion from the government as part of the bipartisan infrastructure bill. The IRA has earmarked up to $7 billion for the launch Regional Clean Hydrogen Hubs Programwhich will help fund 6-10 regional clean hydrogen hubs across the country.

Interestingly, the administration is actively supporting nuclear power: the federal government will provide a $1.5 billion loan for Holtec Internationala private supplier of equipment and systems for the energy industry, at restart a nuclear power plant in southwest Michigan.

The plant was previously marked for decommissioning, but now it will become the first US nuclear power plant to be revived after being abandoned. In January, the DoE issued a request for proposals (RFP) for uranium enrichment services to help establish a reliable domestic fuel supply using HALEU (High Assay Low-Enriched Uranium).

The Inflation Reduction Act (IRA) will provide up to $500 million for selected HALEU enrichment contracts through this RFP. Several years ago, the US Nuclear Regulatory Commission (NRC) approved Center Energy BodyThe request of . (NYSE:LEU) to make HALEU at its enrichment facility in Piketon, Ohio, becoming the first company in the Western world outside of Russia to do so.

By Alex Kimani for Oilprice.com

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