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Securing the Modern Grid: Federal Investments, Digitization, and Supply Chain Strategy

Across the United States (U.S.) grid expansion and modernization is underway, paving the way for accelerated load growth and intelligent resource management. Digitization of the grid is supported by several state and federal programs, providing support for utilities installing advanced metering infrastructure (AMI), AI-powered analytics systems, battery energy storage systems (BESS), and distributed energy resource management systems (DERMS) to transform the grid from a one-way power delivery system into an intelligent, responsive network that will enable faster load growth and power expansion of data centers for advanced artificial intelligence (AI) applications. The digital transformation of America's grid presents opportunity for increased efficiency and resiliency but also introduces new digital risks that require careful management. Digital equipment often contains several vulnerabilities such as unencrypted communication protocols, and persistent remote access capabilities that could be exploited to manipulate device settings, coordinate service disruptions, or inject false data into grid operations. These digital risks become particularly important as the grid must rapidly scale to support AI-driven data centers, which the administration has identified as essential for maintaining U.S. technological leadership and economic competitiveness. These vulnerabilities are compounded by supply chain realities: Chinese manufacturers currently produce 70-90% of essential grid components including inverters, batteries, and control systems, with the U.S. lacking domestic manufacturing capacity for critical assets like extra-high voltage transformers. Recent federal legislation has established Foreign Entity of Concern (FEOC) restrictions to address these risks, requiring projects to achieve escalating thresholds of non-FEOC content to receive tax credits while utilities work to expand sourcing channels for their supply chains and strengthen security measures. These restrictions arrive precisely when utilities face unprecedented electricity demand growth driven by the rapid growth in data centers, creating a considerable challenge: rapidly expanding infrastructure while navigating complex compliance requirements while lacking viable alternatives for many critical components. Idaho National Laboratory (INL) and its partners have developed practical approaches to help utilities navigate these intersecting challenges as they leverage federal investment to strengthen and grow the grid. These solutions include Cyber-Informed Engineering (CIE) principles that build resilience directly into systems, the Cirrus tool for secure cloud migration, and enhanced procurement guidance that embeds security requirements throughout equipment lifecycles. Federal initiatives, such as the Technical Assistance for Digital Assurance (TADA) project, provide direct support to utilities implementing these approaches while facilitating knowledge sharing across the industry. While these tools and frameworks cannot eliminate all risks inherent in foreign supply chain dependencies, they offer pragmatic pathways for strengthening security posture without sacrificing the deployment momentum essential to meeting surging electricity demand. Ultimately, securing America's digital energy infrastructure demands dedicated coordination across multiple fronts: building domestic supply chains, implementing robust digital assurance practices, and maintaining the aggressive modernization timeline necessary for reliability, resilience, and energy independence.

24 POWER TRANSMISSION AND DISTRIBUTION

Digital risk analysis in nuclear engineering projects: Designing for safety, performance, reliability, and security

Cyber-informed engineering and security-by-design frameworks are important in promoting the need to identify cybersecurity concerns early in the systems engineering lifecycle so risks from adversarial cyber-attacks can be eliminated or reduced through engineering design practices. In addition to adversarial risk, risk in operational technology systems also includes non-adversarial and unintentional risk from other factors such as human performance errors, environmental conditions, design flaws, and device degradation or failure. This paper introduces a new concept for characterizing digital risk, both adversarial and non-adversarial, and provides the basis for initial research into a novel digital risk analysis approach focused on incorporating attack difficulty into a multi-attribute analysis technique using robust decision-making. This digital risk characterization is also used to frame a discussion on the challenges of competing objectives and competing stakeholder requirements in an integrated energy system project that incorporates a small modular reactor and industrial facility.

22 GENERAL STUDIES OF NUCLEAR REACTORS

Advanced Transmission Technologies – GETs and HPCs Session 1: ATT Foundations and Dynamic Line Ratings (DLRs)

The INL TADA GETs Cohort Session 1, held on November 4, 2025, convened experts to address the integration of advanced transmission technologies, including Grid-Enhancing Technologies (GETs) and High Performance Conductors (HPCs), with a focus on digital assurance challenges. The session highlighted the growing importance of cybersecurity, supply chain transparency, reliability, and business risk management in deploying GETs, especially Dynamic Line Ratings (DLRs). Participants examined how expanded attack surfaces, limited vendor pools, and new regulatory requirements—such as FERC Orders 881, 2023, and 1920—are influencing utilities and technology providers. The workshop underscored the need for cyber-informed engineering, secure-by-design principles, and practical risk management strategies, while fostering collaboration and knowledge sharing among industry peers. Technical discussions covered the evolution from static to dynamic line ratings, complexities of cloud-based architectures, and NERC CIP compliance challenges. The session concluded with a collaborative risk exercise and a preview of future workshops on advanced power flow control and transmission topology optimization, reinforcing the cohort’s commitment to advancing digital assurance in the energy sector.

24 - POWER TRANSMISSION AND DISTRIBUTION

Grid Communications Supply Chain & Emerging Regulation Challenges Session 1

The TADA Grid Communications Workshops are designed to strengthen cybersecurity and digital assurance across the energy sector by focusing on secure deployment and management of grid communications technologies. These workshops bring together state energy offices, utilities, and technology suppliers to explore the intersection of communications infrastructure, supply chain risks, and emerging regulatory requirements. Participants will apply Cyber-Informed Engineering (CIE) principles to reduce risks in communications systems, engage with INL’s procurement guidance, and explore future tools. Through scenario-based exercises and peer exchange, attendees will develop risk-based security strategies and actionable compliance roadmaps tailored to their grid communications projects. The workshops also help participants navigate evolving regulatory frameworks such as FEOC rules in the OBBB, NERC CIP-013, and NDAA 2024, while identifying compliance gaps in mixed-technology environments. A key outcome is the formation of a practitioner network with ongoing access to INL expertise and resources, fostering long-term resilience in the digital energy ecosystem.

29 - ENERGY PLANNING, POLICY AND ECONOMY

Grid Communications: Digital Assurance and Supply Chain Challenges and Emerging Regulation Session Two

The TADA Grid Communications Workshops are designed to strengthen cybersecurity and digital assurance across the energy sector by focusing on secure deployment and management of grid communications technologies. These workshops bring together state energy offices, utilities, and technology suppliers to explore the intersection of communications infrastructure, supply chain risks, and emerging regulatory requirements. Participants will apply Cyber-Informed Engineering (CIE) principles to reduce risks in communications systems, engage with INL’s procurement guidance, and explore future tools. Through scenario-based exercises and peer exchange, attendees will develop risk-based security strategies and actionable compliance roadmaps tailored to their grid communications projects. The workshops also help participants navigate evolving regulatory frameworks such as FEOC rules in the OBBB, NERC CIP-013, and NDAA 2024, while identifying compliance gaps in mixed-technology environments. A key outcome is the formation of a practitioner network with ongoing access to INL expertise and resources, fostering long-term resilience in the digital energy ecosystem. This is Session 2 of 3 (Full Version).

29 - ENERGY PLANNING, POLICY AND ECONOMY

Grid Communications: Cybersecurity and Supply Chain Challenges and Emerging Regulation Session Three

The TADA Grid Communications Workshops are designed to strengthen cybersecurity and digital assurance across the energy sector by focusing on secure deployment and management of grid communications technologies. These workshops bring together state energy offices, utilities, and technology suppliers to explore the intersection of communications infrastructure, supply chain risks, and emerging regulatory requirements. Participants will apply Cyber-Informed Engineering (CIE) principles to reduce risks in communications systems, engage with INL’s procurement guidance, and explore future tools. Through scenario-based exercises and peer exchange, attendees will develop risk-based security strategies and actionable compliance roadmaps tailored to their grid communications projects. The workshops also help participants navigate evolving regulatory frameworks such as FEOC rules in the OBBB, NERC CIP-013, and NDAA 2024, while identifying compliance gaps in mixed-technology environments. A key outcome is the formation of a practitioner network with ongoing access to INL expertise and resources, fostering long-term resilience in the digital energy ecosystem. This is Session 3 of 3 (Full Version).

29 - ENERGY PLANNING, POLICY AND ECONOMY

Data Center Cybersecurity, Supply Chain Risk Management, and Emerging Regulation Cohort Summary: Takeaways and Action Plans

This report summarizes the outcomes of the Data Center Cohort under the Department of Energy’s Technical Assistance for Digital Assurance (TADA) initiative, aimed at enhancing grid resilience through cybersecurity, supply chain risk management (SCRM), and Cyber-Informed Engineering (CIE). The cohort engaged 17 organizations across utilities, data center operators, vendors, and technology providers in three sessions combining presentations, discussions, and exercises. Key topics included AI-driven load behavior, cybersecurity vulnerabilities in UPS/BESS and cooling systems, governance gaps at utility–data center boundaries, and supply chain integrity. Five cross-cutting themes emerged: interconnection architecture vulnerabilities, fragmented governance, AI-driven stability risks, lack of regulatory frameworks, and long-term supply chain concerns. Actionable recommendations were developed, including implementing DMZ segmentation, formalizing vendor access agreements, designing AI workload limits, and advancing standards through NERC and state-level programs. These strategies aim to strengthen resilience, clarify responsibilities, and ensure secure integration of data centers into the grid.

24 - POWER TRANSMISSION AND DISTRIBUTION

Addressing Consequence within Operational Risk (O.T. Gagnon III) 9-18-2024

Addressing Consequence within Operational Risk: Why threats and security are just not that important! When dealing with cyber or physical risk within any critical infrastructure (CI) environment, don’t concern yourself with vulnerabilities and threats, at least not at first! Also, don’t be overly fixated on “securing the systems” within the organization. The endeavor of tackling operational risk focused on consequences in any critical infrastructure environment to include the complex Aviation ecosystem is challenging even for the most resourced entity but can be advanced though a simplified approach: identifying, binning, and prioritizing the infrastructure environment. While no two entities within a single element of the 16 critical infrastructure sectors are exactly alike when it comes to risk, there is a basic process to move toward a greater understanding of operational risk through becoming more informed about the infrastructure environment in which the entity exists. The process starts with bringing internal and external stakeholders and subject matter experts together to analyze key areas such as Information Technology (IT) and Operational Technology (OT) components and points of convergence, analyzing internal and external cyber and physical dependencies, accounting for explosive growth in devices and wireless technology, and leveraging the contributions of people inside and outside the operational environment. Attaining a common understanding of the infrastructure environment as part of addressing consequences within operational risk is not easy to do or resource light, but the process outlined provides the framework to further any entity’s efforts in this space. When it comes to cyber risks, before an organization can consider vulnerabilities within and threats to its operations, it must first have a solid understanding of the consequences existing inside its infrastructure environment. Idaho National Lab’s Consequence-Driven, Cyber-Informed Engineering is offered as an example of this approach to effective and efficient cyber risk mitigation.

99 GENERAL AND MISCELLANEOUS

Utility-Scale Operational Consequences for Solar Grid Services

This report delves into the critical aspects of grid services provided by solar inverter-based resources (IBRs), with an emphasis on the evolving landscape of microgrids, virtual power plants (VPPs), aggregators, and distributed energy resource management systems (DERMS). As the energy sector undergoes a transformative shift towards more decentralized and resilient grid architectures, understanding the multifaceted risks associated with these technologies becomes paramount. The report categorizes these risks into organizational, technical, and procedural domains, providing a thorough risk assessment framework that stakeholders can utilize to anticipate and mitigate potential issues. In addressing the increasing complexity of grid interconnections, the report highlights the importance of Cyber-Informed Engineering (CIE). By embedding engineering controls and cybersecurity measures into the early stages of system design, this approach aims to fortify grid infrastructure against emerging cyber threats. The analysis includes an exploration of best practices and strategies for integrating CIE principles to enhance grid security and resilience. To provide practical insights, the report conducts a detailed consequence analysis of various grid services and cyber mitigations that can be applied through the interconnection process. This analysis evaluates the potential impacts of different failure modes and vulnerabilities, offering a clear understanding of the consequences that could arise from disruptions within the energy grid. The findings are further enriched by a series of case studies that illustrate real-world scenarios and lessons learned from past incidents. Through this comprehensive examination of grid services and their criticality, the report aims to prepare industry professionals with the knowledge and tools necessary to navigate the complexities of modern energy systems. By providing a comprehensive approach that includes risk assessment, cybersecurity, and consequence analysis, solar stakeholders can more effectively guarantee the reliability, efficiency, and security of the energy grid.

14 SOLAR ENERGY

Data Centers and Digital Assurance Introduction to Supply Chain and Cybersecurity for Data Centers, Session 1

The first session of the TADA (Technical Assistance for Digital Assurance) Data Centers Cohort Workshop, held on October 30, 2025, introduced foundational concepts of Digital Assurance in the context of data center and grid integration. Sponsored by the U.S. Department of Energy, the workshop brought together utilities, data center operators, developers, and vendors to address cybersecurity and supply chain vulnerabilities. The session emphasized the growing criticality of data centers within the electric grid and the need for secure, real-time, bidirectional communication. Participants explored the principles of Digital Assurance, including cybersecurity, cyber-informed engineering (CIE), and lifecycle security, and applied a threat-vulnerability-consequence framework to identify and mitigate risks at the data center–grid interface. Discussions covered a range of threats such as spoofed dispatch signals and insider threats, architectural vulnerabilities like SCADA interfaces and insecure protocols, and potential consequences including cascading grid failures. The session also raised strategic questions about business value, vendor assurance, and defining cyber boundaries and responsibilities. This foundational workshop set the stage for deeper technical analysis and the development of actionable frameworks in subsequent sessions. Session 1 of 3.

24 - POWER TRANSMISSION AND DISTRIBUTION

Developing a Supply Chain Security Program

Amid growing concerns over foreign manufacturing for components and devices deployed in critical energy infrastructure, this research from the national labs will highlight best practices for developing and maintaining a supply chain security program. Tools for asset inventory, tips for developing and maintaining software- and hardware-bills-of-materials (SBOMs and HBOMs), recommended contractual language for vendor agreements, and identification of responsibilities will be shared. We discuss the one-time requirements to enable a successful supply chain security program and the best ways to operationalize this program for maximum impact, including development of robust practices for vulnerability tracking, patch management, and workarounds, with understanding of the reliability and uptime requirements for utilities. The recommendations shared are based on a cyber-informed engineering approach to identification of high-consequence impacts and the engineering controls related to supply chain management that can best mitigate these impacts. This approach allows for prioritization of resources. Additionally, we highlight relative up-front and ongoing costs associated with recommended controls. Viewers will leave with an understanding what a supply chain security program is, and what steps, prioritized for resource-constrained organizations, can build a robust program.

14 SOLAR ENERGY

Cybersecurity Standards, Certification, and Best Practices for DERs

Distributed energy resources (DERs) are becoming increasingly important to the electric grid, including solar energy systems. However, DERs also introduce new cybersecurity risks, including those posed by cloud computing. Standards harmonization is essential for ensuring that DERs are secure and can be safely integrated into the grid. This panel will discuss cyber standards harmonization for solar security. The panel will feature experts from the S2G Program, National Labs and Industry who will discuss the following topics: the cybersecurity risks and future benefits posed by ubiquitous solar energy systems, the development and implementation of cloud-based security solutions for DERs, including solar energy systems, the challenges and opportunities for harmonizing DER cybersecurity standards, and Cyber Informed Engineering and the solar security implementations The panel will also discuss the following specific initiatives: the S2G Program's DER Cybersecurity Framework, UL's DER Cybersecurity Certification Program, and IEEE 1547 Updates. The panel will conclude with a discussion of the future of standards harmonization for DER cybersecurity.

14 SOLAR ENERGY

Advanced Transmission Technologies (ATTs) Supplier Cohort Workshops Cohort Summary [Slides]

This Summary slide deck summarizes the key outcomes of the Advanced Transmission Technologies (ATTs) supplier cohort, part of Idaho National Laboratory’s (INL) Technical Assistance for Digital Assurance (TADA) program. The program aimed to strengthen grid resilience through cybersecurity controls, supply-chain security, and Cyber-Informed Engineering (CIE) for advanced transmission technologies. The cohort brought together vendors representing the full range of Grid-Enhancing Technologies (GETs), including providers of Dynamic Line Ratings (DLR), Advanced Power Flow Control (APFC), Transmission Topology Optimization (TTO), and High-Performance Conductors (HPCs). Discussions focused on institutional, integration, and operational barriers limiting GET adoption; cybersecurity risks at EMS/SCADA, cloud, and network integration points; and supply-chain transparency issues such as semiconductor dependence and SBOM/HBOM expectations. Participants also addressed operator trust, human-in-the-loop requirements, and challenges with utility adoption, while exploring how CIE can support secure deployment of GETs. This deck represents a consolidated summary of challenges and risks identified by vendors, cross-cutting themes and technology-specific insights from three cohort workshops, and actionable mitigations to guide utilities, vendors, and the Department of Energy in advancing secure, trusted deployment of GETs.

24 - POWER TRANSMISSION AND DISTRIBUTION

Advanced Transmission Technologies –GETs and HPCs Session 3: HPCs and Building Actions Plans to Digital Assurance Risks

The third session of the Idaho National Laboratory’s (INL) Technical Assistance for Digital Assurance (TADA) program, held on November 11, 2025, centered on High Performance Conductors (HPCs) and the formulation of action plans to address digital assurance risks associated with Grid-Enhancing Technologies (GETs). This session convened experts from utilities, vendors, and government agencies to examine the technical, operational, and cybersecurity aspects of HPC deployment. Discussions highlighted the benefits of HPCs, such as their ability to rapidly increase transmission capacity using existing corridors, improve grid resilience, reduce system losses, and align with FERC Orders 2023 and 1920. Participants evaluated supply chain and digital assurance risks, including reliance on imported materials, limited domestic manufacturing capacity, workforce shortages, and traceability issues. The session also emphasized the importance of digital trust, integration-layer cybersecurity, and unified risk frameworks, introducing tools like intrusion detection systems, encryption, zero trust networking, and firmware integrity. Recaps of earlier workshops on Dynamic Line Ratings (DLRs), Advanced Power Flow Control (APFC), and Transmission Topology Optimization (TTO) underscored institutional barriers and integration challenges. Action plans were proposed to mitigate issues such as inconsistent cybersecurity practices, SBOM usage, supply chain visibility, operator trust, and misaligned incentives. Additionally, INL presented its supply chain risk management tools and Cyber-Informed Engineering (CIE) principles to support secure procurement and system design. The session concluded with a commitment to share key takeaways, incorporate cohort feedback into future policy development, and continue collaborative engagement through upcoming pilot activities. Session 3 of 3.

24 - POWER TRANSMISSION AND DISTRIBUTION

BESS Digital Assurance, Supply Chain Risk Management, and Emerging Regulation Session One - Abridged

The TADA BESS Supply Chain Workshops are designed to equip participants with the knowledge and tools necessary to address the evolving challenges at the intersection of battery energy storage systems (BESS), cybersecurity, and supply chain vulnerabilities. The workshops emphasize the application of Cyber-Informed Engineering (CIE) principles using INL’s procurement guide and the CIE-BAT tool. Attendees will develop risk-based security strategies and actionable compliance roadmaps tailored to their BESS projects. Additionally, the program fosters a collaborative network of practitioners and provides guidance on navigating emerging regulatory requirements, including FEOC rules under the OBBB framework, to assess and enhance organizational readiness. This is Session 1 of 3.

25 - ENERGY STORAGE