The importance of cybersecurity in the energy sector

The critical need for cybersecurity in energy tech 

Keeping the energy sector secure isn’t just about powering the lights in a home or making sure you can stream the latest episodes of your guilty pleasure reality show. Energy systems are the enabler for all other industries. Transportation, electric, manufacturing – even entertainment, tourism and hospitality – every industry relies on energy systems. As gridX Security Team Lead, Alei Salem says, “Without energy, we’re without power, and then we’re effectively thrown back into the caveman era.”

Because energy systems are the backbone of modern society, any attack on them will have far-reaching consequences. Cyberattacks on power grids and other critical infrastructures not only threaten economic stability but also pose risks to public safety and national security. 

Cybersecurity and the energy transition

Pushing the energy transition forward means more distributed energy resources (DERs), like solar panels, heat pumps, batteries and electric vehicles. Yet with this rise of DERs, the energy sector’s reliance on interconnected networks, which link everything from grid management to customer data, has also increased. Cyber threats have always been a concern for the energy sector, but this modern-day interconnectedness, which is essential for operational efficiency, has widened the attack surface and created more points of failure. 

Connecting DERs to central systems over public networks, such as the Internet, subjects them to probes and attacks from all over the globe. For example, renewable energy systems often rely on smart grid technologies that collect and transmit data in real time, increasing the risk of interception and manipulation. The adoption of digital solutions, such as remote monitoring and control, is essential for managing this new energy landscape but also introduces additional attack surfaces. Protecting these systems is crucial to ensuring the reliability and security of energy supplies as we move toward a more sustainable future.

Additionally, in order to provide personalized experiences to their customers, energy management systems – especially those that manage DERs owned by individuals – increasingly gather personal data, which is a very lucrative target for attackers.

Critical infrastructure vulnerabilities

You might be surprised to find that energy system operators often (unintentionally) foster practices that introduce vulnerabilities unique to their sector. To start, the fear of changing anything from an already-functioning system drives many power grids and energy networks to continue to rely on legacy technologies that were not designed to handle today’s modern cyber threats. These outdated systems often lack robust security protocols, making them more susceptible to exploitation than their counterparts that utilize modern technologies. 

A successful attack on critical infrastructure could cause significant service disruptions, leading to blackouts that affect entire regions. Beyond power outages, cyber incidents can result in data breaches that expose sensitive customer information, damaging public trust and potentially leading to costly legal repercussions. The financial implications extend to energy providers, who may face revenue losses, regulatory fines and expensive system repairs. Moreover, cyberattacks can undermine national security by weakening critical infrastructure, making cybersecurity an urgent priority for the energy sector.

The ‘Cyber Europe’ exercise

In June 2024, a Pan-European exercise called ‘Cyber Europe’ tested the preparedness of Europe’s energy sector in case of a large-scale cyber attack. According to the Commissioner for Internal Market, Thierry Breton, in 2023 alone, more than 200 reported cyber incidents targeted the energy sector, with more than half directed specifically against Europe. 

Cyber Europe brought together 30 national cyber security agencies, over 1,000 experts covering a range of areas from incident response to decision-making and a number of EU agencies, bodies and networks. Together, they tested the coordination, cooperation capabilities and crisis management skills of the sector to test the resilience.

As cyber threats continue to evolve, it is imperative to prioritize cybersecurity exercises. These proactive measures not only enhance our readiness to defend against potential cyberattacks, but also underscore our commitment to safeguarding our systems. Moreover, with the growing sophistication of smart grids, the stakes are higher as the interconnected systems become more susceptible to cyber threats." - Kadri Simson, European Commissioner for Energy

The exercise revealed that cyber incidents can affect everything from grid stability to consumer safety, as well as the areas that still require particular attention, such as reaction times, cascading effects that take place in the case of a blackout (i.e., electricity grids are so interconnected throughout Europe that a blackout in one country has the potential to trigger blackouts or supply shortages in other countries) and (as stated earlier) the challenges of legacy systems combined with new technologies.

How gridX ensures secure energy management

At gridX, we recognize the critical role cybersecurity plays in safeguarding energy systems. Our solutions are designed with a proactive approach to security, aiming to protect both physical assets and digital data against cyber threats. We know that our customers entrust us with a critical aspect of their business in a highly sensitive and regulated field. We recognize that any disruption in our services can impact their (and our) success, which is why we strive to exceed industry best practices and remain transparent about our security measures.

As we develop new features and components, we thoroughly assess potential security risks and implement measures to address them. Below is an overview of our security principles and detailed insights into how these are applied across various components. While this summary reflects our current practices, it is not exhaustive, as our security protocols continually evolve to meet emerging challenges.

Creating a secure, reliable product

A secure, robust cloud infrastructure is the pillar upon which a secure platform and software can stand. According to Alei Salem: “We build our cloud infrastructure on Amazon Web Services (AWS) in a manner that strictly implements the principles of security by design, least privilege and defense-in-depth. In addition to configuring our services to utilize the available security measures offered by AWS, we continuously evaluate their posture against security standards and benchmarks, such as Center for Internet Security (CIS) AWS Foundations Benchmark and the ISO27K family of standards.” 

In building our platform and software, we adopt a Shift Left Security approach (i.e., running security checks early on in the development process rather than at the end). Through performing security architectural reviews and threat modeling, triggering codebase scans with the even miniscule changes to look for potential security vulnerabilities, pentesting our services and monitoring them around the clock once deployed, gridX makes sure that security is embedded and considered within all of the different phases of software development.

Data security

Data security is a top priority, ensuring that customer and operational data are securely collected, stored, transmitted and destroyed after use. We employ stringent data protection measures that safeguard sensitive information throughout its lifecycle. By using advanced encryption methods, we protect data both at-rest and in-transit, minimizing the risk of unauthorized access. We also employ robust authentication processes, which include multi-factor authentication and access controls that ensure only authorized personnel can access critical systems.

Security also includes guaranteeing availability and eliminating redundancy. Databases are continuously replicated and backed up in different availability zones (AZ), and disaster recovery exercises are regularly performed by our engineers to guarantee gridX’s ability to provide a stable, uninterruptible service to our customers.

In addition to technical measures, gridX strictly adheres to common data protection regulations, such as the General Data Protection Regulation (GDPR), to meet legal standards and enhance consumer trust. Compliance with these regulations is essential not only for protecting privacy but also for aligning with industry best practices and building transparent, trustworthy relationships with our customers. Through these comprehensive protocols, gridX demonstrates its dedication to providing secure, compliant energy management solutions.

Four-eyes principle

Whether it is a graphic, text or code, gridX implements the “four-eyes principle”. This means a second person always needs to review any change in the platform, XENON, before it is released. This principle is in addition to automated checks, ensuring that all coding is implemented to the highest possible standards and any potential vulnerabilities in our development process are uncovered as early as possible. 

Fortified gridBox

The gridBox device is built with security at its core, incorporating advanced features to prevent unauthorized access both physically and digitally. Its robust design includes tamper-resistant hardware that protects against physical breaches, while secure firmware ensures data integrity and confidentiality. Additionally, communication between the gridBox and the cloudlayer and backend is E2E encrypted. 

The gridBox is designed with the principles of compartmentalization and “implicit deny”. An attacker that manages to compromise a gridBox will neither be able to retrieve data from other gridBoxes nor control other user accounts they do not own. That is, breaking into a gridBox does not give an attacker the “keys to the kingdom” as fail-safes are still in place to keep the entire energy ecosystem secure. 

To stay ahead of evolving cybersecurity risks, the gridBox receives regular software updates and patches that address new vulnerabilities as they emerge. These continuous updates ensure that the device remains resilient against potential exploits. Additionally, the gridBox includes built-in threat detection and prevention mechanisms that actively monitor system performance for any unusual activity. By quickly identifying anomalies and potential breaches, the gridBox enables rapid response to potential threats, helping to maintain secure and uninterrupted energy management operations.

App security

App security is integral to our operations, employing multiple layers of protection across our applications. We encourage responsible vulnerability disclosure through a dedicated policy and utilize the authentication and authorization service Auth0 for bot detection, incorporating features like brute-force protection and IP throttling to secure user access. Each code commit undergoes analysis for potential vulnerabilities and leaked secrets, and sensitive credentials are managed with secret managers, ensuring they are not stored in code. Secure coding practices are reinforced through onboarding training and monthly security talks, fostering a culture of security awareness within the company.

Security scanning is integrated into our CI/CD pipeline, along with branch protection and internal penetration tests. We prioritize vulnerability management and prompt patching, supported by 24/7 monitoring. Additionally, our use of ModSecurity with the OWASP Core Rule Set as our Web Application Firewall enhances defense against web-based threats, ensuring gridX’s applications remain resilient and reliable.

Secure communication

Any data transmitted over public networks is encrypted using modern and secure technologies (usually based on TLS 1.3). This includes any communication via our API to/from gridBoxes and with partners. This encryption ensures that data transmitted between devices and the cloud remains confidential and protected from interception. 

Scalable cloud infrastructure

Our cloud infrastructure is designed for both scalability and security, allowing gridX to seamlessly adapt to fluctuating workloads while maintaining robust protection against cyber threats. gridX utilizes the power of Infrastructure-as-Code (IaC) to achieve those goals. gridX Head of Infrastructure & Security Thomas Eck says, “It is important to use infrastructure as code and immutable infrastructure, meaning that our code is rolled out using modern tools such as Terraform, Cloudformation or Kubernetes. Ultimately, this results in a high level of scalability, reproducibility, accountability and transparency, some of the most vital components of any secure system.”  

High availability of solutions

gridX’s solutions are built with redundancy and resilience to ensure high availability, even in the face of cyber threats. By using a hybrid approach that combines a local IoT gateway with a cloud operating system, our EMS solution allows for high availability. This setup not only provides secure data synchronization but also guarantees that if internet connectivity is lost, the local gateway can continue operating independently for several hours. This continuity minimizes downtime and allows essential functions to remain operational until the connection is restored. By incorporating multiple layers of backup systems and fail-safe mechanisms, we minimize potential downtime and ensure that our services remain operational during unexpected incidents.

In the event of a cyberattack, gridX has robust disaster recovery plans in place. These plans include comprehensive data backups, rapid restoration processes and measures to prevent data loss, enabling us to restore services quickly and protect critical information. Our commitment to reliability is backed by Service-Level Agreements (SLAs), where we guarantee 99% continuous operation. Energy service providers can trust that our systems will perform reliably, even under high demand or during crisis situations, thanks to these resilient design principles and our contractual commitment to uptime.

Promoting a culture of security

The best way to have a secure product is by instilling that culture from the ground up (or, in this case, within the company). gridX actively promotes security within our company culture, starting from an employee’s onboarding process and continuing with frequent company checks and updates. 

Cultivating a security-first company culture
At gridX, we believe that a strong security posture starts with a company-wide commitment to cybersecurity. This commitment is woven into our culture, fostering a proactive approach that equips every employee with the knowledge and tools needed to defend against threats. From the moment new hires join gridX, they undergo security training as part of the onboarding process, ensuring they are aware of potential cybersecurity risks and best practices. Periodic updates from our IT and security teams keep everyone informed about emerging threats and remind employees of their role in maintaining a secure environment.

To reinforce our security-first culture, our cybersecurity team regularly launches phishing campaigns by sending simulated phishing emails to employees. This helps ensure that our team is vigilant and ready to identify and respond to real threats. Additionally, gridX has dedicated cybersecurity teams that focus on monitoring, detecting and responding to potential security incidents. They conduct ongoing risk assessments and audits, allowing them to continuously evaluate and enhance gridX’s security measures. These efforts are key components of gridX’s proactive approach to maintaining a secure environment across the company.

Internal IT infrastructure

In addition to promoting cybersecurity best practices with our employees, we also know that safety starts “in the home” and that means having a secure, internal IT infrastructure. “gridX elects to be a cloud-native company rather than self-host services we utilize on a daily basis because we don’t need to ‘reinvent the wheel’ to maintain a secure internal IT infrastructure,” Alei Salem explains. “We use secure, battle-tested services, such as Google Workspace, Slack, Personio and Atlassian, which are commonplace in many companies. Why? Because these services invest a tremendous amount of time and money into their services, and they have experts who have experts for how to secure data services. Our internal IT infrastructure is standing on the shoulders of giants.”

Likewise, the in-office WiFi access is divided in two: an employee access and a guest access. This is a simple, yet extra layer of security that keeps non-gridX employees from infiltrating the internal system.

Internal commitment to cybersecurity
gridX’s commitment to cybersecurity extends to dedicated teams focused on monitoring, detecting and responding to potential threats. Our cybersecurity team continuously evaluates our systems, performing ongoing risk assessments and audits to identify areas for improvement. This proactive approach helps us stay ahead of emerging threats and adapt our defenses accordingly. By cultivating a strong understanding of cybersecurity among all employees and having dedicated teams on the front lines, gridX ensures that security is embedded into every aspect of our operations.

Collaboration with industry standards
To maintain cutting-edge security practices, gridX actively engages with industry bodies and adheres to established security standards. Our participation in this compliance keeps us informed of the latest developments and best practices, allowing us to align our strategies with industry benchmarks. Additionally, we contribute to information-sharing initiatives within the energy sector, collaborating with other stakeholders to share insights on potential threats and defense strategies. This collaborative approach strengthens our security measures and reinforces our role as a trusted partner in the energy management landscape.

Why energy service providers can trust gridX

Energy systems, like many others, require a robust foundation, topped off with secure code and sophisticated tools. Systems must be regularly checked, both manually and automatically, and the right standards or protocols must be in place to ensure smooth and seamless communication. The high level of innovation in the energy industry means that as new technologies appear, they must be rigorously tested before being rolled out. Only then can the security of power flows be guaranteed, now and in the future. 

gridX has a proven track record of securing energy systems, underpinned by a longstanding commitment to providing reliable and resilient solutions. Our comprehensive cybersecurity measures and proactive approach to risk management ensure that our systems are robust against current threats and prepared for future challenges. This dedication to security offers energy service providers peace of mind, allowing them to focus on their core operations without worrying about potential cyber threats.

By partnering with gridX, providers gain access to future-proof solutions designed to stay ahead of the evolving threat landscape. We continuously enhance our technologies and security protocols to meet new challenges, ensuring our energy management systems remain resilient and adaptable. With gridX, energy service providers can trust that their infrastructure is not only secure today but also ready for the demands of tomorrow.

To learn more, visit our Trust Center security page.