Assessing cyber attacks on local electricity markets using simulation analysis: Impacts and possible mitigations

Abstract

Improved management of the distribution level of the electric grid could allow faster and more reliable deployment of renewable energy sources, and greater grid resilience. One approach to achieving these benefits is to develop local electricity markets (LEMs). However, implementing these markets would entail changes in information flows creating new vulnerabilities to cyber attacks. Previous research has examined cyber risks to the existing electric grid while other research provides conceptual models of LEMs, but there are few studies of cyber risks specific to LEMs. Our is the first study we are aware of that utilizes simulation techniques to assess the severity of these risks. Our results show that denial-of-service attacks causing random data loss can cause significant market distortions, even at low levels of loss, and can create serious risks to the market and to the grid. We offer recommendations to mitigate risks identified in the simulation.