AEE Institute and contributors, Wilson Rickerson and Mike Wu, examine how the rise of distributed energy resources is reshaping the grid’s cybersecurity landscape — and what industry and policymakers must do to stay ahead of growing threats. 

What is Clear. The modernizing electricity grid is becoming more distributed, connected, and intelligent — and with that comes both new opportunity and new vulnerability. Cybersecurity can no longer be an afterthought; it must be embedded into every layer of the grid, from bulk power systems down to the grid edge.

  • The Threat Is Real and Growing. Cyberattacks on energy infrastructure are increasing in frequency and sophistication. From the Mirai IoT botnet and WannaCry ransomware to the CRASHOVERRIDE malware that triggered a wide-area blackout in Ukraine, attackers are demonstrating the ability to cause real-world disruption at scale.
  • Distributed Energy Resources Create New Attack Surfaces. As solar arrays, batteries, smart meters, and other distributed energy resources (DERs) come online, each connected device is a potential entry point. Edge devices are especially vulnerable — they are numerous, resource-constrained, and historically difficult to secure with standard tools.
  • Standards Exist, But Gaps Remain. Frameworks like NERC CIP, the NIST Cybersecurity Framework, and state-level efforts in California, Michigan, and Connecticut provide important guardrails — but they were largely designed for the bulk power system and don’t fully address the distributed grid of today and tomorrow.
  • Practical Protections Are Available Now. Changing default passwords, encrypting communications, segmenting networks, conducting regular penetration testing, and training staff are low- or no-cost measures that can meaningfully reduce risk across the grid. Industry does not need to wait for new regulation to act.

How It Started. “The security of the distribution system, and especially the grid edge of DER, must come from the industry itself — utilities and their service and solution providers.” The path to a secure distributed energy future runs through proactive industry leadership, coordinated standards, and cybersecurity built in from the start.