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1.3.3.402 - Cybersecurity Value-at-Risk Framework

The Cybersecurity Value-at-Risk Framework tool will guide users through an assessment and detailed analysis of a hydropower plant's operations. The tool will then provide results and data to inform effective cybersecurity investment decision-making and planning. The results will help managers understand the risk probability of cyberattacks on their facilities and how best to use resources to mitigate those risks.

cybersecurity↗

The Cybersecurity Value-at-Risk Framework: Informing Cybersecurity Decisions

The Cybersecurity Value-at-Risk Framework is a tool that can be used by hydropower plant manager to make more educated cybersecurity investments. Users can take a self guided assessment allowing the tools to generate risk, impact and cybersecurity scores and be given risk-based recommendations to enhance decision-making.

CVF↗

Cybersecurity Value-at-Risk Framework

As more variable renewable energy sources are added to the grid, the role of hydropower as a reliable baseline and firming resource is growing more critical. However, the U.S hydropower fleet is not fully prepared to face modern issues such as cybersecurity threats. Hydropower accounts for 37% of U.S. utility-scale renewable electricity but is challenged by diverse infrastructure and legacy devices that predate modern security practices. While new cybersecurity solutions cannot simply be added to current hydropower generation and operation technologies, custom cybersecurity assessments can reveal system-specific threats and risk probabilities and identify mitigating enhancements.

cybersecurity valuation methodology↗

The Cybersecurity Value-at-Risk Framework

Hydropower remains one of the strongest forms of renewable energy generation methods. It is crucial to address the increasing risks associated with the rapid digitization. The push towards decarbonization also factors in the need to ensure security and resilience for grid-connected renewable energy resources. This report summarizes the U.S. Department of Energy's Water Power Technologies Office's effort to develop a cybersecurity valuation methodology that assists hydropower stakeholders in assessing risks associated with plan operations and gathers valuation guidance through a web-based applicaiton. The Hydropower Cybersecurity Value-at-Risk Framework delivers a platform for industry members to perform self assessments and make informed decisions on their cybersecurity investments.

CVF↗

Hydropower Cybersecurity Value-at-Risk Framework

Hydropower remains one of the strongest forms of renewable energy generation methods. It is crucial to address the increasing risks associated with the rapid digitization. The push towards decarbonization also factors in the need to ensure security and resilience for grid-connected renewable energy resources. This report summarizes the U.S. Department of Energy's Water Power Technologies Office's effort to develop a cybersecurity valuation methodology that assists hydropower stakeholders in assessing risks associated with plan operations and gathers valuation guidance through a web-based application. The Hydropower Cybersecurity Value-at-Risk Framework delivers a platform for industry members to perform self-assessments and make informed decisions on their cybersecurity investments.

13 HYDRO ENERGY↗

Informing Cybersecurity Decisions With the Value-at-Risk Framework

Security at every site is critical to making hydropower a strong contributor to the country's grid, but with ongoing development and expanding capabilities, the diversity of the existing hydropower fleet makes across-the-board investment decisions difficult. The threat of cyberattacks naturally increases as the interconnection of Information Technology and Operational Technology networks broadens. Hydropower plants require custom analyses that are specific to the unique challenges and characteristics of any given facility. Facilities, however, often do not have the necessary resources for managers to make informed decisions on investments based on assessed capabilities and risks.

50 EE - Wind and Water Power Program - Water (EE-4↗

Informing Cybersecurity Decisions With the Value-at-Risk Framework

Security at every site is critical to making hydropower a strong contributor to the country's grid, but with ongoing development and expanding capabilities, the diversity of the existing hydropower fleet makes across-the-board investment decisions difficult. The threat of cyberattacks naturally increases as the interconnection of Information Technology and Operational Technology networks broadens. Hydropower plants require custom analyses that are specific to the unique challenges and characteristics of any given facility. Facilities, however, often do not have the necessary resources for managers to make informed decisions on investments based on assessed capabilities and risks.

cybersecurity↗

Cybersecurity Value-at-Risk Framework: Preprint

As more variable renewable energy sources are added to the grid, the critical role of hydropower as a reliable baseline and firming resource is rapidly growing. However, the U.S hydropower fleet is not fully prepared to face modern issues such as cybersecurity threats. Hydropower accounts for 37% of U.S. utility-scale renewable electricity but is challenged by diverse infrastructure and legacy devices that predate modern security practices. While new cybersecurity solutions cannot simply be added to current hydropower generation and operation technologies, custom cybersecurity assessments can reveal system-specific threats and risk probabilities and identify mitigating enhancements.

cybersecurity valuation↗

Advancing Understanding of Geothermal Representation in the Power Sector to Accelerate Deployment

Driven mostly by decarbonization goals, geothermal interest in the US power sector has grown considerably, gradually evolving from being considered a niche technology, to being recognized as a viable source of clean, baseload, grid-balancing power, and renewable electric power generation. Furthermore, recent technical advances that could greatly accelerate deployment in the near future, and US federal incentives for low-carbon generation technologies, including geothermal, can enable opportunities for integrating geothermal into utilities resource planning portfolios. However, in general, utilities do not have in-house expertise to evaluate geothermal technologies and its potential role in helping decarbonize the grid as well as help them achieve their individual decarbonization goals. To date, geothermal is rarely included in Capacity Expansion Models (CEM) which utilities use in their planning activities and resource/technologies prioritization. To this end, EPRI and NREL are working together in a DOE-GTO funded research project to improve geothermal understanding (opportunities, value, risks) among the power industry to help accelerate geothermal deployment. In the present paper we describe the approach and preliminary findings of this work, focused on two topics: 1) Expand the degree of understanding on the value, opportunity, and risk of geothermal technologies among utilities and related companies/groups, specifically around geothermal for power generation. 2) Improve representation of geothermal power technologies in capacity expansion models (CEM).

capacity expansion models↗

Risk-Averse Bi-Level Stochastic Network Interdiction Model for Cyber-Security Risk Management

Security of cyber networks is crucial; recent severe cyber-attacks have had a devastating effect on many large organizations. The attack graph, which maps the potential attack paths of a cyber network, is a popular tool for analyzing cyber system vulnerability. In this study, we propose a bi-level stochastic network interdiction model on an attack graph to enable a risk-averse, resource constrained cyber network defender to optimally deploy security countermeasures that protect against attackers with an uncertain budget. This risk- averse conditional-value-at-risk (CVaR) model minimizes a weighted sum of the expected maximum loss over all scenarios and the expected maximum loss from the most damaging attack scenarios. We develop a customized constraint and column generation algorithm to solve our model as well as several acceleration techniques to improve the computational efficiency. Numerical experiments demonstrate that the acceleration techniques enable the solution of relatively large problems within a reasonable amount of time: applying all the acceleration techniques also reduces the average computation time of the basic algorithm by 71% for 100-node graphs. Using metrics called mean-risk value of stochastic solution and value of risk-aversion, computational results suggest that our stochastic risk-averse model significantly outperforms deterministic and risk-neutral models when 1) the distribution of attacker budget is heavy-right-tailed and 2) the defender is highly risk-averse.

Bhuiyan, Tanveer H.↗

Independent Review of the Proof-of-Concept Cyber100 Compass Cybersecurity Risk Tool

The U.S. Department of Energy (DOE) Office of Cybersecurity, Energy Security, and Emergency Response (CESER), and Office of Electricity (OE) commissioned the National Renewable Energy Laboratory (NREL) to develop a method and tool to enable electric utilities to understand and manage the risk of cybersecurity events that can lead to physical effects like blackouts. This tool, called Cyber100 Compass, uses cybersecurity data elicited from cybersecurity experts, then incorporates that data into a tool designed to be usable by cybersecurity non-experts who understand the system itself. The tool estimates dollar-valued risks for a current or postulated future electric power digital control configuration, in order to enable utility risk planners to prioritize among proposed cybersecurity risk mitigation options. With the development of the Cyber100 Compass tool for quantification of future cyber-physical security risks, NREL has taken an initial bold step in the direction of enabling and indeed encouraging electric utilities to address the potential for cybersecurity incidents to produce detrimental physical effects related to electric power delivery. As part of the Cyber100 Compass development process, DOE funded NREL to seek out an independent technical review of the risk methodology embodied in the tool. NREL requested this review from Sandia National Laboratories, and made available to Sandia a very late version of the project report, as well as NREL personnel to provide clarification and to respond to questions. This paper provides the result of the independent review activity.

97 MATHEMATICS AND COMPUTING↗

Evaluating Technology Adoption Risks in Early-Stage Materials Research

Development of new technologies often begins with fundamental materials science research. Decisions at this stage can shape factors related to the eventual adoption readiness of the technology, such as process scalability or materials availability. Here we present the early-Stage Technology Evaluation for Adoption Risks (STEAR) framework as a method for qualitatively assessing metrics spanning four categories of adoption risks: value proposition, market acceptance, resource maturity, and license to operate. We conduct a case study applying STEAR to different methanol production processes at a range of technology readiness levels and demonstrate how the assessment identifies key challenges related to adoption readiness. Finally, we discuss efforts to expand the applicability and utility of STEAR, including focus group feedback and complementary quantitative analysis methods.

36 MATERIALS SCIENCE↗

Extreme Risk Mitigation in Reinforcement Learning using Extreme Value Theory

Risk-sensitive reinforcement learning (RL) has garnered significant attention in recent years due to the growing interest in deploying RL agents in real-world scenarios. A critical aspect of risk awareness involves modelling highly rare risk events (rewards) that could potentially lead to catastrophic outcomes. These infrequent occurrences present a formidable challenge for data-driven methods aiming to capture such risky events accurately. While risk-aware RL techniques do exist, they suffer from high variance estimation due to the inherent data scarcity. Our work proposes to enhance the resilience of RL agents when faced with very rare and risky events by focusing on refining the predictions of the extreme values predicted by the state-action value distribution. To achieve this, we formulate the extreme values of the state-action value function distribution as parameterized distributions, drawing inspiration from the principles of extreme value theory (EVT). We propose an extreme value theory based actor-critic approach, namely, Extreme Valued Actor-Critic (EVAC) which effectively addresses the issue of infrequent occurrence by leveraging EVT-based parameterization. Importantly, we theoretically demonstrate the advantages of employing these parameterized distributions in contrast to other risk-averse algorithms. Our evaluations show that the proposed method outperforms other risk averse RL algorithms on a diverse range of benchmark tasks, each encompassing distinct risk scenarios.

Wang, Yu↗

Interpreting Primal-Dual Algorithms for Constrained Multiagent Reinforcement Learning

Constrained multiagent reinforcement learning (C-MARL) is gaining importance as MARL algorithms find new applications in real-world systems ranging from energy systems to drone swarms. Most C-MARL algorithms use a primal-dual approach to enforce constraints through a penalty function added to the reward. In this paper, we study the structural effects of this penalty term on the MARL problem. First, we show that the standard practice of using the constraint function as the penalty leads to a weak notion of safety. However, by making simple modifications to the penalty term, we can enforce meaningful probabilistic (chance and conditional value at risk) constraints. Second, we quantify the effect of the penalty term on the value function, uncovering an improved value estimation procedure. We use these insights to propose a constrained multiagent advantage actor critic (C-MAA2C) algorithm. Simulations in a simple constrained multiagent environment affirm that our reinterpretation of the primal-dual method in terms of probabilistic constraints is effective, and that our proposed value estimate accelerates convergence to a safe joint policy.

chance constraints↗

Quantifying Investment Risk: Analysis of the Purchase Decision of a Nuclear Power Plant

Cost overruns are an ill-fated part of the deployment history of nuclear power plants (NPPs) in the United States, and yet studies increasingly show the important role nuclear technologies must play in decarbonizing the U.S. economy. Paradoxically, then, a key piece of a coherent decarbonization strategy depends on attracting investor action to a purchase where historical cost overruns have been sizeable. To address this challenge, this study aims to develop a financial model that quantifies risk of cost overruns in the decision-making process for purchasing advanced reactor concepts. Using the concept of Value at Risk (VaR), the model is built to evaluate financial risk nuclear construction with the aim to identify risk mitigation strategies. The objective is to identify strategies to mitigate cost-risk challenges and to assess the potential reduction in investor risk exposure. The paper presents the initial development and preliminary verification of the financial risk analysis model. The development of this model involved a comprehensive approach to estimating financial risk over the operating life of NPP that stems from construction uncertainties. By utilizing net present value (NPV) with discounted cash flows, the model captures the complex interconnections of project costs, construction timelines, revenue, and uncertainties. Verification of the model involved testing historical data from previous reactor construction projects against the construction project of Vogtle 3 and 4. The results of this paper present the comparison of the preconstruction cost overrun prediction with the current cost estimates from a nearly complete Vogtle 3 and 4.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

CO 2 Pipeline risk assessment and comparison for the midcontinent United States

For this work, a comprehensive quantitative risk assessment for the construction and operation of CO 2 transportation networks considered for the Midcontinent United States was conducted. The results showed risks associated with CO 2 pipelines were significantly less than those of other pipeline types. The assessment used four conceptual pipelines of different lengths to discuss risks operators may see. The assessment evaluated the risk associated with construction and operation using data from the US Occupational Safety Health Administration to determine the risk of injury or death for pipeline workers and data from the US Pipeline and Hazardous Materials Safety Administration for CO 2 , natural gas distribution, natural gas transmission/gathering, and non-CO 2 hazardous liquid pipelines to develop quantitative likelihood and severity values leading to risk values. The data for the assessment covered incidents from 2010 to 2017 for CO 2 pipelines. The average risk for construction and 30 years of operation for four CO 2 pipeline configurations ranging between 79 and 1,546 miles in length was found. The construction and operational risk averaged between $\$1,400,521$ (approximately $\$0.02$/tonne of CO 2 ) for the shorter pipeline (79 miles) and $\$27,481,939$ (approximately $\$0.10$/tonne of CO 2 ) for a longer pipeline (1,546 miles). The largest risks of fatality for CO 2 pipelines comes from vehicle transport. The largest operational risk to the pipeline was due to leakage. Public pipeline opposition is also a significant risk; it was not quantified but is addressed.

03 NATURAL GAS↗

Hydropower Cybersecurity Risk Management and Valuation

Advancements to DOE WPTO funded Hydropower Cybersecurity Value-at-Risk Framework application allows stakeholder to translate risk-based assessments to quantitative scores allowing to better decision making for cybersecurity investments.

13 HYDRO ENERGY↗