Mitigating Cyber Vulnerabilities in Local Electricity Markets

Abstract

Improved management of the distribution level of the electric grid could allow faster and more reliable deployment of renewable energy sources, better support for electric vehicles, and greater grid resilience. One approach to achieving these benefits is to develop decentralized local electricity markets (LEMs). However, these markets would require changes in information flows that create novel risks and vulnerabilities to cyber attacks. While previous research examines cyber risks to the existing electric grid and other research provides conceptual models of LEMs, there are few studies of cyber risks specific to LEMs. Our is the first study we are aware of that utilizes simulation techniques to quantify the severity of these risks. We find that even unsophisticated attacks could create serious physical or financial risks to the grid and offer recommendations to mitigate those risks.

Keywords: Distributed electricity, Prosumers, Denial-of-Service, Cyber-Physical, Simulation, Cybersecurity