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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

Control Room of the Future Testbed Workshop – After-Action Report

The U.S. Department of Energy’s Office of Electricity is supporting a one-year, multi-laboratory effort to define the needs and requirements for a Control Room of the Future testbed, or CROFT. The effort responds to increasing grid complexity driven by large new loads, dynamic generation resources, and the growing adoption of advanced technologies and tools, including artificial intelligence (AI) and machine learning (ML). To support safe, secure, and effective grid modernization, CROFT will focus on how emerging technologies and tools can be rigorously evaluated in realistic operational settings, with attention to human-machine interaction, cognitive load, and workforce readiness. The project team includes Argonne National Laboratory, Idaho National Laboratory, National Laboratory of the Rockies, and Pacific Northwest National Laboratory. As part of the scoping effort, the team conducted two industry-focused workshops: one at DTECH on February 5, 2026, informed by prior industry interviews, and a second on May 4, 2026, adjacent to IEEE T&D. These engagements brought together utilities, vendors, consultants, national laboratories, academia, and government stakeholders to identify and prioritize use cases, barriers, validation needs, data-sharing constraints, and near- and longer-term requirements. This feedback will directly inform CROFT’s architecture and research focus areas, ensuring the testbed is grounded in real-world operational needs and designed to evaluate emerging technologies and tools in realistic control-room environments.

artificial intelligence

Dynamic security assessment of systems powered only by grid-forming power plants with uncertain dispatch using polynomial vectors

A modern challenge in power engineering is to perform the dynamic security assessment (DSA) of grids that are 100% powered by inverter-based resources (IBRs). Addressing this challenge is difficult because: (i) the dispatch of IBRs can be uncertain as a result of the variability of renewable resources and (ii) they have hard current control limits that cannot be neglected, contrasting synchronous machines. To address this problem, this paper sets forth a framework to conduct DSA of bulk power systems that are 100% powered by grid-forming IBRs. Furthermore, the framework considers that IBR operational conditions are unknown but bounded by a zonotope which is also expressed as a polynomial vector for uncertainty propagation via Dormand–Prince integration. The framework is applied to modified versions of the WSCC 9-bus and IEEE 39-bus grids.

14 SOLAR ENERGY

Technical Assistance for Digital Assurance: DistribuTECH Workshop

Idaho National Laboratory, the Department of Energy’s Grid Deployment Office, and other national laboratories are collaborating to ensure the U.S. energy infrastructure is reliable, resilient, and secure. This involves strategically leveraging digital technologies to modernize the grid, enhance its resilience against all hazards and disruptions, and fortify national energy security across a diverse energy portfolio. In this workshop you will learn about Idaho National Lab’s Technical Assistance programs, where organizations will be matched with a national laboratory subject matter expert to focus on their key topical area. The technical assistance offered through this track is designed to be responsive to a rapidly changing regulatory landscape and cutting-edge technologies that enhance grid reliability and efficiency. Users will be guided through a tailored analysis and mitigation program to determine their current security posture and given assistance in evaluating supply chain and protection choices against potential consequences.

Digital assurance

Clean Energy Cybersecurity Accelerator: Cohort 2 - Asimily Public Report

The U.S. Department of Energy (DOE) Office of Cybersecurity, Energy Security, and Emergency Response (CESER) sponsors the Clean Energy Cybersecurity Accelerator (TM) (CECA) to expedite the deployment of emerging security technologies that address the most urgent security concerns facing modern and future electric grids. CECA Cohort 2 assessed solutions focused on hidden risks due to incomplete system visibility and device security and configuration. Improving visibility can be achieved through operational technology (OT) asset identification solutions, including capabilities like automatic discovery, vulnerability reporting, and configuration monitoring. Solutions that monitor and identify assets in information technology (IT) networks in other domains are widely used; however, there is far less adoption of monitoring solutions for operational technology environments. Wider adoption may increase with increased confidence in the ability for these solutions to understand and respond to the specific requirements of OT environments. CECA Cohort 2 evaluated the active and passive asset discovery capabilities of market-ready solutions, documented and analyzed results, and identified gaps in functionality or capabilities. This report and describes how these results can help advance the adoption of these and similar solutions in the electric sector.

24 POWER TRANSMISSION AND DISTRIBUTION

Secure Time Synchronization in Power Grids and Network HIL Synchrophasor Testing

Reliable and secure time synchronization underpins the monitoring and control functions of modern power grids. As GPS-based timing infrastructures grow more susceptible to spoofing and jamming, their vulnerabilities pose escalating risks to grid stability. This work investigates a secure, resilient timing framework that can serve as an alternative or redundant source for power grids, with a particular focus on synchrophasorbased applications. A candidate timing system architecture is evaluated to guarantee trustworthy time dissemination, even in degraded conditions. A network hardware-in-the-loop testing of two synchrophasors validates the concepts, demonstrating enhanced timing integrity, improved detection of timing anomalies, and sustained observability during adverse timing events.

Wu, Ori [ORNL] (ORCID:0000000326723410)

Securing Grid Communications Infrastructure: Addressing Gaps Beyond NERC CIP Facility Perimeters

The North American electric grid relies on a complex communications infrastructure that extends beyond facility perimeters traditionally covered by NERC Critical Infrastructure Protection (CIP) standards. While CIP requirements have significantly strengthened cybersecurity within Electronic Security Perimeters, many operational communications—such as those between control centers, substations, and third-party networks—fall outside current regulatory scope. As grid modernization introduces new technologies and connectivity models, these external pathways present evolving security challenges. This brief explores the nature of these challenges, including emerging attack vectors and supply chain considerations, and highlights how ongoing grid transformation increases exposure to sophisticated threats. It outlines practical strategies and policy options to complement existing standards, such as expanding secure communications practices, enhancing supply chain transparency, and fostering collaboration among federal, state, and industry stakeholders. Near-term actions like encryption, authentication, and contractual safeguards can help reduce risk while longer-term frameworks are developed to ensure resilient and secure grid operations.

24 - POWER TRANSMISSION AND DISTRIBUTION

IEEE PES GM Poster - Cyber-Informed Engineering Approach to Mitigating BESS Supply Chain Concerns

Battery energy storage systems (BESS) are increasingly important to meet the needs of grid resilience and reliability. BESS provide critical grid services, maintaining stability of the grid with increased variable conditions. However, there are significant geopolitical and security concerns regarding their operation in critical infrastructure, due to lack of a domestic supply chain and prevalence of foreign entity of concern (FEOC) components in BESS and associated inverter-based resources. The supply chain challenge is dually exacerbated by a lack of alternative suppliers who can meet the economic targets for energy delivery and a potentially adversarial supply chain. Solutions are needed to secure components, addressing mixed layers of risk and engineering controls. This paper presents a specific application of Cyber-Informed Engineering (CIE) principles for BESS and recommends an alternative strategy to blocking the supply chain, ensuring that grid modernization targets can be met despite lack of a validated or secure supply chain. This study focuses on the United State (U.S.) use case, but the process can be applied globally to address supply chain security challenges. CIE practices represent the next step in functional assurance and risk mitigation, ensuring optimal resource allocation and enhancing security measures to safeguard the future of energy in the U.S. and beyond.

25 - ENERGY STORAGE

Adaptable Standards for Discovery, Access, and Usability of Oak Ridge National Laboratory’s Data Portals and Catalogs

Oak Ridge National Laboratory (ORNL) is leveraging its established capabilities and subject matter expertise in data curation, governance, management, national security, and risk assessment and mitigation to support the US Department of Energy (DOE) Grid Modernization Initiative. Using standards modeled by the National Institute of Standards and Technology (NIST), the Data Curation Network (DCN), the Oak Ridge Leadership Computing Facility (OLCF), and other leading organizations in the fields of energy research, high-performance computing, and national and homeland security, ORNL seeks to provide a federated approach to research data discovery, use, and interoperability.

96 KNOWLEDGE MANAGEMENT AND PRESERVATION

Virtual Power Plant Architecture and Resilient Design

Virtual Power Plants (VPPs) represent a fundamental shift in electric grid operations, aggregating distributed energy resources (DERs) such as solar panels and battery storage to deliver utility-scale grid services traditionally provided by centralized power plants. This report examines the unique architectural, operational, and digital assurance considerations that distinguish VPPs from conventional utility infrastructure as they scale from pilot projects to mainstream deployment across the United States. While VPPs offer significant opportunities for grid modernization and enhanced flexibility, their distributed, multi-stakeholder architecture introduces distinct security challenges that differ fundamentally from traditional generation facilities. The analysis identifies risks in VPP operations, including device-level security gaps, platform vulnerabilities, and communication protocol weaknesses that create expanded attack surfaces compared to centralized power plants. Through examination of real-world incidents and emerging threat patterns, the report demonstrates how some VPPs' reliance on consumer-owned devices, public internet infrastructure, and complex vendor ecosystems require new approaches to digital assurance and operational security. The findings provide practical guidance for utilities, regulators, and aggregators to implement robust security frameworks and operational best practices essential for maintaining grid reliability as VPP deployment accelerates under the Federal Energy Regulatory Commission (FERC) Order 2222 and related regulatory initiatives.

24 - POWER TRANSMISSION AND DISTRIBUTION

Advanced Computing Annual Report 2025 [Slides]

In Fiscal Year (FY) 2025, the National Laboratory of the Rockies (NLR) continued to advance computing as a cornerstone of energy innovation, expanding the Kestrel high-performance computing (HPC) system to 56 peak petaflops. This growth strengthened Kestrel's role as a national asset for applied energy research, enabling larger, more complex simulations and accelerating the integration of artificial intelligence (AI) methods across the laboratory's computing portfolio. In FY 2025, AI was a component of most projects running on Kestrel, underscoring its central role in modern energy science and engineering. Kestrel supported a broad and diverse set of 507 modeling and simulation projects, engaging 855 researchers across the U.S. Department of Energy's (DOE's) Office of Critical Minerals and Energy Innovation (CMEI) portfolio and other offices, as well as partners from industry, academia, and utilities. These efforts span critical materials discovery, energy systems modeling, grid modernization, advanced manufacturing, and other areas essential to strengthening U.S. energy security and competitiveness. Together, these collaborations produced 708 technical outputs, including 293 peer-reviewed publications, reflecting both the depth and impact of the science enabled by NLR's computing capabilities. This year's report highlights the growing importance and benefit of AI throughout NLR's research programs and features work by early career researchers who are helping shape the future of computing-enabled energy innovation. Explore these sections and the many project successes captured in the pages that follow.

97 MATHEMATICS AND COMPUTING

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

Commercialization of Pumped Storage Hydropower Technologies

Argonne National Laboratory and the National Laboratory of the Rockies were tasked by the U.S. Department of Energy’s Water Power Technology Office (WPTO) to conduct the Commercialization of Pumped Storage Hydropower Technologies study to investigate commercialization challenges faced by developers of pumped storage hydropower (PSH) projects and technologies by going beyond literature review to gather direct industry insights, lessons learned and best practices from interviews and webinars with industry specialists to create this report for PSH stakeholders and the general public. Researchers explored key challenges faced by PSH developers and innovators seeking to commercialize new technologies to improve PSH design, siting, construction, and operations. Along with highlighting challenges, the study sought to identify the best practices in developing and deploying new PSH projects and innovations. This report is designed to present insights, lessons learned, and best practices relevant to those with an interest in highlighting, informing, or advancing these PSH commercialization efforts. Along with highlighting challenges and best practices, the study sought to identify avenues by which DOE and national laboratories can help support and streamline PSH commercialization and project development processes.

13 HYDRO ENERGY

Existing Methods for Grid Strength Assessment and Role of Hydropower in Future Grids

The power system is undergoing rapid evolution with increasing penetration of inverter-based resources (IBRs), large loads, microgrids, and power electronic devices. Ensuring reliable and stable operation of the modern power grid is a multi-faceted challenge that requires detailed understanding of this complex system. Dynamic stability is a major concern in maintaining the security of power grids as the generation mixes and large loads transitions to include high shares of power electronic devices. The operation of IBRs in regions with low system strength and higher grid impedances has been found to be the main reason behind many of the power system instabilities that manifest themselves in various types of oscillations and interactions that, if not properly addressed and damped, can jeopardize the reliable operation of the power system. Weak grid conditions compound such stability problems, particularly when many IBRs operate in proximity to and connect to weak power grids. Therefore, it is important to assess grid strength for planning, integration and operation of IBRs for a given power system. In this report, we aim to understand and classify existing methodologies for grid strength assessment, along with their limitations and future needs. Further, we aim to utilize the huge untapped potential in utilizing hydro energy resources in addressing some of the pertinent challenges of grid strength and reliable operation of modern power systems. Hydropower, historically valued for its flexibility and dispatchability, now faces new constraints due to reduced share of synchronous machines in the generation mix and seasonal variability of available water resources. Yet, these same plants present untapped potential beyond energy generation - notably, as providers of critical grid services. This report explores how hydropower plants, particularly through operation as synchronous condensers, can play a pivotal role in strengthening the grid amid evolving system dynamics.

13 HYDRO ENERGY

Cyber-Informed Engineering (CIE) Guide for States

The Cyber-Informed Engineering (CIE) Guide for States provides state energy offices, public utility commissions, and partner organizations with a structured framework for integrating cyber-resilient engineering practices into energy planning, grantmaking, interconnection processes, and workforce development. As grid digitalization and the adoption of distributed energy resources accelerate, states face expanding cyber-physical risks that traditional cybersecurity measures alone cannot fully address. CIE offers a proactive, consequence-focused engineering methodology that emphasizes eliminating or mitigating high-impact failure modes through design, physical controls, and operational safeguards. The guide outlines the 12 core CIE principles, demonstrates their application through state-focused use cases—including grant evaluation rubrics, interconnection reviews, allow-list development, and training programs—and provides practical tools such as scoring frameworks, impact assessment methods, and implementation checklists. It also highlights pathways for state–utility collaboration and opportunities for technical assistance from national laboratories. By adopting CIE, states can enhance grid reliability, reduce lifecycle costs, strengthen supply-chain assurance, and foster a security-aware engineering culture that aligns with broader resilience and modernization goals. November 2025

29 ENERGY PLANNING, POLICY, AND ECONOMY

Cyber-Informed Engineering (CIE) Guide for States

The Cyber-Informed Engineering (CIE) Guide for States provides state energy offices, public utility commissions, and partner organizations with a structured framework for integrating cyber-resilient engineering practices into energy planning, grantmaking, interconnection processes, and workforce development. As grid digitalization and the adoption of distributed energy resources accelerate, states face expanding cyber-physical risks that traditional cybersecurity measures alone cannot fully address. CIE offers a proactive, consequence-focused engineering methodology that emphasizes eliminating or mitigating high-impact failure modes through design, physical controls, and operational safeguards. The guide outlines the 12 core CIE principles, demonstrates their application through state-focused use cases—including grant evaluation rubrics, interconnection reviews, allow-list development, and training programs—and provides practical tools such as scoring frameworks, impact assessment methods, and implementation checklists. It also highlights pathways for state–utility collaboration and opportunities for technical assistance from national laboratories. By adopting CIE, states can enhance grid reliability, reduce lifecycle costs, strengthen supply-chain assurance, and foster a security-aware engineering culture that aligns with broader resilience and modernization goals. November 2025

29 - ENERGY PLANNING, POLICY AND ECONOMY

Accelerating Next-Generation Cybersecurity R&D Using AI Workflows: BADGER Project Development

The Broadband Automation for Distributed Grid Efficiency and Resilience (BADGER) project aligns with national strategic priorities for integrating emerging wireless technologies and advancing AI-driven security. As critical infrastructure modernizes toward increasingly software-defined and interconnected systems, the ability to leverage 5G/NextG networks and AI-enabled control becomes essential. This report outlines work at the National Laboratory of the Rockies (NLR) to develop a NextG-native security architecture powered by AI-RAN concepts and evaluate workflows that enable efficient and reliable architectures. Together, these efforts position the laboratory to accelerate innovation while directly supporting national security and resilience objectives.

5G/6G

FY25 Electric Grid Security Annual Report

Sandia’s Electric Grid Security program advances a national vision of energy dominance and accessibility, while applying our national security -emphasis on ensuring of a secure, resilient, and affordable electric system for all users. Our achievements reflect a strategic approach combining technology development; modeling, simulation, and data analytics; and partnered demonstrations and outreach to further the adoption of advanced grid and storage technologies. Our FY25 efforts leverage the strengths of our partnerships—spanning Sandia’s core science and technology competencies as well as external technology leaders—to develop the solutions today which enable the grid of tomorrow. Key accomplishments in this report that support our strategy span our technical program areas and include: • New open-source analytical tools for systems -level planning and optimization, including significant advances to the QuESt analytical environment; • Further advancement of artificial intelligence and machine learning to enhanced grid operations and planning as we rise to the challenge of new large loads; • Development of solid-state power conversion technologies and a new medium-voltage research lab; • New technologies to assess wildfire vulnerabilities and mitigate potential impacts; • Advanced applications of new cybersecurity technologies with industry partners; • Contributions to understanding the impacts of electromagnetic pulses and geomagnetic disturbances on grid components; and • Digital twin development for hybrid microgrids with multiple generators, storage, and loads. This report indicates key areas of research and engagement and summarizes the impact of Sandia’s contributions through notable accomplishments, journal publications, patents, and technical conferences and presentations. It is provided with the hope that readers discover ways we can further team to create our modern grid and apply the outcomes of our efforts. The bulk of work described herein is funded by several offices within the U.S. Department of Energy (USDOE), including the Office of Electricity (OE); Cybersecurity, Energy Security, and Emergency Response (CESER); former offices such as the Office of Energy Efficiency and Renewable Energy (EERE), the Grid Deployment Office (GDO), the Office of Clean Energy Demonstrations (OCED), and other key programs at USDOE. As we continue to state in these annual reports, the contributors to our successes are too numerous to name here, though our team wishes to express our deep gratitude to the numerous program and project sponsors at the US Department of Energy, who often function equally as technical collaborators; our many partners in industry, academia, utilities, and other national labs; and fellow researchers and business partners at Sandia whose leadership and creativity have enabled the accomplishments described herein.

24 POWER TRANSMISSION AND DISTRIBUTION