Cybersecurity is emerging as a top priority for the energy sector as rapid digital transformation increases the risk of cyberattacks, experts warned. The growing reliance on new technologies like AI and IIoT, coupled with aging infrastructure, has significantly expanded the potential attack surface for malicious actors.
A recent roundtable discussion involving energy sector leaders highlighted critical gaps in current cyber defenses. Participants emphasized the urgent need for the industry to adapt its security strategies to match the pace of technological advancement and safeguard essential infrastructure.
Energy Sector’s Cybersecurity Challenges Explored
Zaki Krayem, Head of Industrial Cybersecurity at Kaspersky for the META region, pointed to human errors and inadequate access controls as significant vulnerabilities. He cited examples, such as an engineer using a personal hotspot to access a critical system and a company storing passwords on a physical note, which underscore the need for fundamental security hygiene.
The integration of new technologies, including artificial intelligence, industrial internet of things (IIoT), digital twins, and augmented/virtual reality, has created an expanded attack surface. This is particularly true when these innovations are implemented on top of older, legacy systems that may still be running outdated operating systems like Windows XP.
Guy Ngambeket, Senior Principal at FTI Consulting, advised energy companies to prioritize cybersecurity investments based on potential business impact. He outlined three core principles for an effective approach: protect the most critical assets first, strengthen foundational security controls before adopting advanced solutions, and view cybersecurity as an ongoing organizational transformation rather than solely a technical issue.
“Cybersecurity must be treated as a business enabler, integrated into operations, not simply a technical concern,” Ngambeket stated.
The Rising Threat to Power Grids
The global power sector’s digital evolution has brought efficiency gains but also a documented surge in cyberattacks. According to GlobalData, cyber risk is now one of the three defining issues impacting modern power grids.
Shubbhronil Roy, VP of digital grids strategy and transformation at Schneider Electric, noted that cyber threats have more than doubled in recent years and that power grids are increasingly becoming targets. He highlighted the severe consequences of grid disruption, which can lead to widespread power outages impacting entire cities and national stability.
A survey by GlobalData revealed concerning statistics about the state of cybersecurity in the sector. Only 36% of organizations reported fully implemented and regularly tested cybersecurity measures, with nearly two-thirds experiencing partial, inconsistent, or no protection.
Confidence in recovery capabilities is also low, with only 19% of respondents expressing high confidence in their ability to detect, contain, and recover from a cyberattack.
Erin Illman, Partner and Chair of the energy cybersecurity and privacy team at Bradley Arant Boult Cummings, emphasized the necessity of embedding cybersecurity into enterprise risk management and business continuity planning. She advocated for scenario planning, enhanced board oversight, and regular stress testing to justify and support long-term investments in resilience.
Supply Chain Vulnerabilities and Future Mitigation
Supply chain exposure has been identified as a significant risk area. Recent data suggests that a substantial proportion of energy sector breaches in 2024 originated from third-party vendors, with software suppliers posing the greatest threat.
Joe Saunders, CEO of RunSafe Security, explained that embedded software in critical components like controllers and sensors can introduce inherited vulnerabilities into grid infrastructure. Attackers are actively exploiting these weaknesses to identify targets and map networks.
Other areas of high risk include smart meters, advanced metering infrastructure, and the increasing convergence of information technology (IT) and operational technology (OT) systems.
To address these challenges, experts agreed on the importance of enhanced information sharing, closer collaboration between industry players, and strategic investment in cybersecurity skills. Given the shortage of digital talent, many organizations are focusing on upskilling their current workforce and fostering security-aware cultures throughout their operations.
Saunders underscored the gravity of the situation, stating, “We cannot afford cyberattacks and disruption to the energy systems that underpin our technological and economic progress.”
Looking ahead, the energy sector faces ongoing pressure to enhance its cyber defenses. The next steps will likely involve greater regulatory scrutiny, further development of industry-wide standards, and increased collaboration on threat intelligence. The effectiveness of these measures and the industry’s ability to adapt to evolving threats will be closely watched.