Poorly protected power supply
If the continuous supply of electricity and gas is interrupted for more than a few hours, the supply situation deteriorates rapidly and major damage is imminent. 68% of energy service providers fear power outages due to hacker attacks, according to a survey by the consulting firm EY.
The "Critical infrastructure protection (CIP)" is an important topic because they are the lifeblood of the economy and society in Switzerland. In order to build up the resilience of critical infrastructures, the federal government has divided them into ten CIP sectors with diverse subsectors. This naturally includes energy supply. And here there is a problem in terms of resilience, as can be seen from the EY study "Electricity plant study Switzerland 2017" emerges.
Obsolete distribution networks
"For energy companies, cybercrime is now as big a risk as natural disasters or fires. When more than two-thirds of Swiss energy suppliers fear power outages due to cyberattacks, this shows the enormous need for action. Distribution grids and IT systems are often not up to date. Distribution network operators need to upgrade, and not just in terms of security," says Alessandro Miolo, Energy Sector Leader at EY Switzerland.
According to a survey of the top management of 82 electric utilities and energy suppliers, they have recognized the problem and want to protect their networks better: 45 percent want to appoint an IT security officer or have already done so. 44 percent have introduced an information security management system or are thinking about it.
Energy networks more decentralized
The energy networks are facing a fundamental transformation with the energy turnaround: They are taking on an important function in making the Energy Strategy 2050 a reality. Their expansion is what makes the energy transition possible in the first place. According to EY, the mainstays are smart grids and smart meters. They would be needed to integrate the increasingly fragmented and decentrally generated electricity from new renewable energies into the overall system.
With the energy transition, consumers are becoming so-called prosumers, who not only consume electricity, but also produce it themselves and in some cases feed it into the grid. In addition, the growing production of wind and solar power is increasing intraday volatility. As a result, he said, the power grid is increasingly challenged and must be better able to respond to highly fluctuating feeds. "Companies are not yet following consistent strategies to modernize their grids. The installation of smart meters tends to take place according to regional rather than strategic considerations. Companies urgently need a stringent concept of how they will expand their grids in the future in order to take full advantage of the opportunities offered by digitization," emphasizes Benjamin Teufel, Senior Manager Energy at EY Switzerland.
According to the survey, 59 percent of the companies surveyed nevertheless see digitization as an opportunity. Only ten percent consider the new technological possibilities to be a threat, which is a positive figure compared with Germany (27%); after all, the digitization of the networks is giving rise to new business models, and the distribution network operators are also convinced of this. The respondents see great opportunities for the use and provision of data, for metering and for innovative storage solutions. "Many companies see digital technologies as tools for getting where they want to go faster. But digitization has the potential to fundamentally change business models. Utilities must be careful not to underestimate the potential of digitalization and technologies such as blockchain," warns Alessandro Miolo.
Security of supply is underestimated
The majority of electric utilities and energy suppliers have a positive attitude toward the Energy Strategy 2050 recently approved by the people: 55 percent of those surveyed believe it can be implemented. However, 39 percent are convinced that the targets cannot be achieved.
However, a clear majority of respondents are convinced that the current concept of Energy Strategy 2050 underestimates or ignores the costs for companies and households (68%) and the security of supply (61%). "Many utilities and electricity companies complain about a lack of framework conditions for the Energy Strategy 2050. For example, there is still a lack of a market design that ensures security of supply in the long term," emphasizes Benjamin Teufel.
