Blockchain: Next Generation Supply Chain Security for Energy Infrastructure and NERC Critical Infrastructure Protection (CIP) Compliance

Michael Mylrea, Sri Nikhil Gupta Gourisetti

The U.S. power grid is a complex system of systems that requires a secure, reliable and trustworthy global supply chain. This is especially true for the grid’s increasing number of networked energy delivery system (EDS) and industrial control systems (ICS) and associated vendors, distributers, integrators and end users. Grid modernization has increased the use of “smart” energy devices that network, digitize, automate and increasingly converge the cyber-physical energy supply chain. In this Energy Internet of Things (EIoT) environment there is an increasing number of both critical cyber assets as well as data speed and size requirements, creating new cyber supply chain security and NERC CIP compliance challenges for utilities, regulators and vendors. On July 21, 2016, the Federal Energy Regulatory Commission (FERC) issued Order No. 829 directing the North American Electric Reliability Corporation (NERC) to address cyber security supply chain risk management for ICS hardware, software, and computing and networking services associated with Bulk Electric System (BES) operations. In realization of these goals, improvements are needed in in the process and technology to better identify, monitor, audit, realize compliance goals and secure EIoT environments. This paper explores how blockchain technology presents a disruptive solution to facilitate NERC CIP compliance and increase the security of the BES supply chain through a cryptographically signed distributed ledger that provides increased data provenance, attribution and auditability.

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