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Distributed Energy Resource Cybersecurity Framework Best Practices

Current cybersecurity challenges for distributed energy resources (DERs) stem from the integration of various systems and the cyber-physical security concerns they bring. Although frameworks exist for industrial control systems and other energy systems, a simple guided tool that can prioritize recommended actions for controls specific to DERs is lacking. Additionally, the novelty of the field has made it difficult to create a standardized procedure for DERs with cybersecurity in mind. In response to this critical need to address cybersecurity risk management, the National Renewable Energy Laboratory (NREL) has developed a framework and accompanying web application known as the Distributed Energy Resources Cybersecurity Framework (DERCF) (Powell, 2019). A brief overview of the DERCF can be found in Section 1.2. This document provides a guide to cybersecurity best practices identified by technical research and site visits where the framework was used to assess the cybersecurity posture of DER systems.

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Applying the Risk Management Framework: The Distributed Energy Resource Risk Manager

As part of a multiyear effort, the National Renewable Energy Laboratory (NREL) has dedicated resources to understand and identify cybersecurity weaknesses in distributed energy resources (DERs) by performing assessments. Due to a lack of standardization and rapidly increasing adoption of DERs, there is a critical need to address cybersecurity needs for DER systems in an interactive way. Furthermore, federal agencies, which are required to obtain an authority to operate, are challenged by the complexities of including their DERs. To help meet this need, in early 2020, NREL released the Distributed Energy Resources Cybersecurity Framework (DERCF) and accompanying Web application. This process is supported by the Risk Management Framework (RMF) developed by the National Institute of Standards and Technology. This project, referred to as the DERCF RMF application, expands on the existing DERCF work to include methods that support walking a user through the seven RMF steps. The tool will be available for download at no cost from [link ]. The purpose of this paper is to describe the steps the DERCF team at NREL took to understand Steps 1-5 of the RMF process. Additionally, this document will identify future work on the first five steps as well as a plan for Steps 6 and 7.

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Modeling distributed energy resource aggregations in security constrained unit commitment and economic dispatch

The Federal Energy Regulatory Commission (FERC) recently issued Order 2222, which requires all wholesale electricity markets in the US to allow distributed energy resources (DERs) to participate in the market as aggregated resources. These DER aggregations may be composed of many individual resources that are offered and dispatched by the market as a single entity. We present here a model of a distributed energy resource aggregator (DERA) that is scheduled by a market operator’s security constrained unit commitment (SCUC) and security constrained economic dispatch (SCED). The DERA model includes constraints for battery energy storage systems (BESSs), demand response resources (DRRs), and a simple distributed energy resource (DER). This paper describes a model for each resource type and presents two methods for the DERA to generate market offer curves: a profit-maximizing optimization to compute cost curves and a direct cost algorithm to determine dispatch costs for each resource and combine into cost curves. Once all participating DERAs are scheduled in SCUC/SCED, the model is then modified to dispatch individual DERs to maximize profit or minimize schedule deviation of the DERAs. A simulation of a representative day illustrates the DERA offers, the scheduled generation, and the DERA dispatch. Findings show the potential for unavoidable schedule deviations due to internal DER constraints and due to economic incentives to deviate from the SCUC/SCED schedules. This highlights the importance of DERA offer construction on market efficiency and system reliability. Novel aspects of our approach include: (1) We consider the asymmetry of price incentives impacting DERAs from the wholesale market compared to those impacting consumers from the retail market, as imposed by current regulations and laws. (2) We model aggregate consumer response through statistically parameterizable utility functions rather than a potentially impractical approach of modeling each individual consumer. (3) We show how to use the DERA operational dispatch model to create offers into the wholesale electricity market. (4) We show how DERAs may fail to meet their scheduled dispatch because the market offer format may not permit them to fully express their operational features such as intertemporal costs and constraints to the market.

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Utility Managed Distributed Energy Resources Intelligent Community - UDERMS iCommunity (Final Technical Report)

The Utility Managed Distributed Energy Resources Intelligent Community (UDERMS iCommunity) project, led by PacifiCorp and supported by the U.S. Department of Energy’s Building Technologies Office (Award No. DEEE0009782), aimed to demonstrate an integrated, utility-managed “behind-the-meter” distributed energy resource (DER) program connecting multifamily, commercial, institutional, and industrial buildings to deliver grid services and improve energy efficiency.

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Electric Access System Enhancement (EASE): Assessment of a Distributed Energy Resource Management System for Enabling Dynamic Hosting Capacity

The Electric Access System Enhancement (EASE) project demonstrated a scalable, interoperable, and cost-effective means of integrating high penetration of distributed energy resources (DERs). The control architecture developed leveraged a Distributed Energy Resource Management System, Distribution System Operator for transacting energy, and 3rd Party DER Aggregator platform. The project identified ways to enhance the customer interconnection process to the grid and improve access to information from DERs and optimize the usage of DERs to provide energy services in a simulated day-ahead shadow market while maintain grid reliability. By integrating these capabilities into a scalable system of systems, the DSO can effectively balance DER generation and customer demand on the distribution network. This capability allows the grid to host more DER than traditionally possible on wires alone. Hosting more DER has the added benefit of supplying increased demand growth, sometimes beyond the capacity limits of the distribution network itself. This is known as a dynamic hosting capacity, which could help utilities manage the forecasted growth in electricity demand as California switch to electric vehicles and appliances. This could help to establish energy storage and PV generation as a “pseudo firm” generation resource mix if managed appropriately and provide sufficient resource adequacy for distribution capacity upgrade deferrals.

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How Distributed Energy Resources Can Support Resilience in Utility Distribution Networks

The goal of this webinar is to engage with electric utilities in the Midwest, particularly small public utilities, to understand the industry's needs for science tools to plan for winter resilience in the future, designing tools that will benefit electric power resilience in all communities. Michigan Tech leads this project with partners from multiple academic, government, and industry groups and asked NLR to present on DERs and laboratory tools and resources.

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Recommended Functionalities for Improving Cybersecurity of Distributed Energy Resources

The current electric grid is transitioning through increasing penetration of distributed energy resources (DERs), which include intermittent renewable generation resources on the distribution side. Both the monitoring and control of DERs require extensive data-exchange and communication networks. These networks lead to cyber vulnerabilities and risks of new kinds of cyberattacks that may be extremely destructive for power system operations. Although current standards, such as IEEE Std. 1547-2018, do not discuss cybersecurity measures for DERs, cybersecurity controls should be developed for securing DER systems at the device level, communications level, and applications level. This paper discusses the current industry's best practices related to DER cybersecurity and proposes recommended functionalities for improving the cybersecurity posture of DERs, specifically at the device/distribution level. These practical recommendations have been discussed and verified with the industry through a DER cybersecurity working group.

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Study of Communication Boundaries of Primal-Dual Based Distributed Energy Resource Management Systems (DERMS)

As the coordination of distributed energy re-sources becomes more necessary to provide grid services through a distributed energy resource management system (DERMS), studying the communication requirements for suc-cessful real-world, low-cost implementation becomes increasingly important. Specifically, this paper studies the necessary communication time resolutions between the different system components for a primal-dual-based DERMS, a highly de-veloped DERMS framework. We design a metric to evaluate the functionality of a DERMS with respect to providing grid services. Using numerical simulations based on a real-world feeder in Colorado, we show that the upper bound on the time resolutions is on the order of minutes instead of the previously assumed order of seconds.

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Distribution Grid Management in the Presence of Distributed Energy Resources

The global concerns over climate change, government policies, and incentives in support of distributed energy resources (DERs) are accelerating the growth of DERs in distribution networks. The growth in DER penetration levels can create various issues such as over/under voltages, reverse power flows, overloading, and protection miscoordination. State-of-the-art grid automation solutions such as advanced distribution management systems (ADMS) and distributed energy resource management systems (DERMS) can leverage the DERs to improve distribution grid operations. The ADMS offers advanced grid management functions such as Volt-VAR optimization (VVO), fault management, and outage management to the distribution operator to improve situational awareness and optimize network operations. The DERMS solutions aggregate the small-scale BTM DERs to provide grid services including demand response, voltage regulation, and situational awareness. In this presentation, distribution grid management approaches in the presence of DERs using ADMS and DERMS will be discussed.

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Model Formulations: Integrating Distributed Energy Resources (DER) using Advanced Unit Commitment Models and DER Aggregation Methodologies

A distribution energy resource aggregator (DERA) constitutes a group of distribution energy resources with small generation capacities which meet the threshold to participate in the electricity wholesale market. This document provides the proposed DERA model formulation that will be implemented in the SCUC simulation’s architecture for the SCUC-DER project. Different economical assessment methodologies have been developed to incorporated bids for individual distributed resources, which include solar cost dispatch and cost model, BESS opportunity cost offer algorithm, and price sensitive demand response model. Detailed methods are proposed to aggregate individual cost offers to a DERA cost curve to bid in SCUC market while three methods are proposed to simulate DER actual dispatch. Based on the DERA models in this document, the SCUC-DER project will be able to assess the impacts of DERA on the distribution system’s operation and reliability.

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Recommendations for Distributed Energy Resource Access Control

Cybersecurity for internet - connected Distributed Energy Resources (DER) is essential for the safe and reliable operation of the US power system. Many facets of DER cybersecurity are currently being investigated within different standards development organizations, research communities, and industry committees to address this critical need. This report covers DER access control guidance compiled by the Access Controls Subgroup of the SunSpec/Sandia DER Cybersecurity Workgroup. The goal of the group was to create a consensus - based technical framework to minimize the risk of unauthorized access to DER systems. The subgroup set out to define a strict control environment where users are authorized to access DER monitoring and control features through three steps: (a) user is identified using a proof-of-identity, (b) the user is authenticated by a managed database, (c) and the user is authorized for a specific level of access. DER access control also provides accountability and nonrepudiation within the power system control environment that can be used for forensic analysis and attribution in the event of a cyber-attack. This paper covers foundational requirements for a DER access control environment as well as offering a collection of possible policy, model, and mechanism implementation approaches for IEEE 1547-mandated communication protocols.

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Review of Intrusion Detection Methods and Tools for Distributed Energy Resources

Recent trends in the growth of distributed energy resources (DER) in the electric grid and newfound malware frameworks that target internet of things (IoT) devices is driving an urgent need for more reliable and effective methods for intrusion detection and prevention. Cybersecurity intrusion detection systems (IDSs) are responsible for detecting threats by monitoring and analyzing network data, which can originate either from networking equipment or end-devices. Creating intrusion detection systems for PV/DER networks is a challenging undertaking because of the diversity of the attack types and intermittency and variability in the data. Distinguishing malicious events from other sources of anomalies or system faults is particularly difficult. New approaches are needed that not only sense anomalies in the power system but also determine causational factors for the detected events. In this report, a range of IDS approaches were summarized along with their pros and cons. Using the review of IDS approaches and subsequent gap analysis for application to DER systems, a preliminary hybrid IDS approach to protect PV/DER communications is formed in the conclusion of this report to inform ongoing and future research regarding the cybersecurity and resilience enhancement of DER systems.

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Cybersecurity for Distributed Energy Resources: All Hazards Approach for Grid Modernization

Distributed energy resources (DER) sit at the intersection of IoT and critical infrastructure. As we work towards clean energy and decarbonization targets, high rates of growth of DER are expected, making them an important component of generation and grid services. They have been a part of the explosion of internet connected devices developed to solve real-world problems and make life easier by providing clean, local energy and enable the smart management of grid services. However, the quick-to-market, low-cost drivers for DER, combined with a historically relative low-impact has meant that cybersecurity has not been a top priority. So as DER penetration increases, will DER be a part of the growing challenge of securing the grid, or part of the solution for necessary grid modernization? In this talk, we will discuss the factors that have led to our current position and what makes cybersecurity for DER unique. A wide range of research is conducted at national labs, in partnership with industry and academia, to inform everything from standards and regulation, to the development of cyber-physical anomaly detection through use of digital twins, and even advanced threat analytics to SBOM and HBOM tracking. Even with this multi-faceted approach to the challenges, the question remains: is this too little too late or are we doing enough to secure the grid for the next 30 years?

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State Strategies for Valuing Distributed Energy Resources in Cost-Effective Locations

The deployment of Distributed Energy Resources (DERs), small-scale electricity generation sources or controllable loads connected to the distribution system or a facility served by the distribution system, can have wide-ranging and positive impacts for the electricity grid. Interconnecting a DER in a high-value location on the grid can unlock benefits beyond those that accrue to the off-taker or asset owner. When DERs are deployed optimally, not only can the individual consumer benefit, but the local utility, the electricity system, and other ratepayers can benefit as well. By engaging in locational DER planning, states can help protect their communities and ratepayers and can help ensure the reliability and resilience of the electricity system. This report explores states' role in better integrating locational value into DER siting and development. It first outlines some of the benefits that can be achieved through the deployment of DERs in high-value locations. It then looks at state policy and regulatory roles and the tools states can use to influence the location of DER development. The report next examines the challenges of locational DER planning, with a particular focus on the challenges that states face in influencing the location of DER development. It highlights three case studies from states that engaged in locational DER planning through the Multistate Initiative to Develop Solar in Locations that Provide Benefits to the Grid and then presents several lessons learned from these efforts. The final section of this report summarizes some recent publications related to locational value of DERs in the form of an abbreviated literature review.

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Real Time - Optimal Power Flow Based Distributed Energy Resources Management System (DERMS) (CRADA Number CRD-20-16909 Final Report)

The integration of behind-the-meter distributed energy resources (DERs) into distribution systems brings transformative changes to power systems. This requires operators and planners to find solutions to modernize electric grids and to effectively manage DERs for grid services. NREL developed novel DER management algorithms (referred to as Real-Time Optimal Power Flow, RT-OPF) through U.S. Department of Energy (DOE)-funded efforts, including Advanced Research Projects Agency–Energy (ARPA-E) Network Optimized Distributed Energy Systems (NODES) funding. This cutting-edge control technology aims to modernize distribution systems with large amounts of DER integration, which will help utilities solve issues brought by renewable integration and build resilient and renewable-based electric grids nationwide. Utilidata worked with NREL to investigate the commercialization opportunity of this RT-OPF-based distributed energy resource management system (DERMS). In this project, NREL performs the technology transfer of the RT-OPF to Utilidata to help them fully understand the RT-OPF solution, to identify potential engineering hurdles, and to assess the expected commercial value of various RT-OPF use cases and deployment. The technology transfer work includes two major tasks. First, NREL performs an in-depth knowledge transfer of the entire RT-OPF solution to Utilidata to help them gain an extensive and detailed understanding of the complete RT-OPF solution. In this task, NREL provides exhaustive information (e.g., documentation, code packages, laboratory and field trial data, performance results) while conducting in-depth training sessions to provide a thorough explanation of the entire solution. NREL hosts meetings to present different topics related to the RT-OPF solution, and question-and-answer sessions are included in each meeting to better explain the RT-OPF-related work. Second, the RT-OPF simulations are performed in a laboratory environment. The main objectives of this task are to walk through with Utilidata engineers how to set up a simulation of RT-OPF, identifying each RT-OPF code block/component in operation, learning how these components interact with each other, and eventually running RT-OPF simulations under various system conditions. This task helps Utilidata engineers understand performance limitations and constraints while also quantifying the commercial value of the RT-OPF for different use cases. Based on these two tasks, Utilidata engineers should be able to define and prioritize the next steps of RT-OPF implementation with an eye toward commercial success and scalability of the solution. The next steps are expected to be part of a new project following the conclusion of this project.

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Distributed Energy Resources Disaster Matrix

This issue brief explores how different distributed energy resources (DERs) are impacted by various types of natural disasters to assist stakeholders in evaluating the technology options best able to meet their resilience priorities.

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