NERC 2025 REPORT: US Power Grid at "Extreme Risk" from Supply Chain & Cyber Attacks

The North American Electric Reliability Corporation (NERC) has released its 2025 ERO Reliability Risk Priorities Report, delivering a stark warning that the U.S. power grid is at "extreme risk" from a convergence of threats, with cybersecurity and supply chain vulnerabilities topping the list. The report emphasizes that increasingly sophisticated cyberattacks, coupled with a fragile supply chain and growing interdependencies with other critical sectors, have created an environment where large-scale disruptions are more likely than ever.nerc+1

The Core Risks: A Perfect Storm

The 2025 RISC Report identifies five critical risk profiles that threaten the stability of the bulk power system (BPS):

1. Grid Transformation: The rapid retirement of traditional power plants and the accelerated deployment of inverter-based resources (like solar and wind) and large digital loads (like AI data centers) are fundamentally changing how the grid operates.industrialcyber+1

2. Resilience to Extreme Events: The grid faces increasing stress from extreme weather events, which can be compounded by coordinated cyber or physical attacks.ampyxcyber

3. Security: The report explicitly elevates cybersecurity and physical security as a top-tier risk, noting that the "growing complexity of system equipment and operations increases security challenges and enhances the grid’s attractiveness as a target for adversaries".nerc

4. Critical Infrastructure Interdependencies: The power grid's reliance on natural gas, water, and telecommunications systems creates cascading failure points.industrialcyber+1

5. Energy Policy: Volatile and fragmented energy policies complicate long-term planning and investment in grid reliability.ampyxcyber

Critical Infrastructure Interdependencies: A Domino Effect

A key focus of the NERC report is the concept of "critical infrastructure interdependencies," which describes how a failure in one sector can trigger a collapse in another. The modern power grid does not exist in a vacuum; it is deeply intertwined with other essential services.industrialcyber

For example, many power plants are fueled by natural gas delivered through pipelines. These pipelines rely on electricity to operate their compressor stations. A cyberattack that shuts down a gas pipeline's control system can halt the fuel supply to a power plant, forcing it offline. This creates a dangerous feedback loop where a failure in the energy sector can cripple the very infrastructure it depends on.

This is not a theoretical exercise. The 2023 Blue Locker ransomware attack, which targeted Pakistan's National Transmission & Despatch Company, demonstrated how a cyberattack on an energy utility can disrupt operations and threaten a nation's power supply. The NERC report warns that similar tactics are being developed by state-sponsored actors targeting North American infrastructure.

The Unseen Threat: Supply Chain Vulnerabilities

The report also sounds the alarm on persistent supply chain vulnerabilities. The BPS relies on a global supply chain for critical components like high-voltage transformers and advanced control systems. This creates two major risks:

• Availability: Geopolitical tensions and manufacturing bottlenecks can lead to long lead times for essential equipment, hampering the ability to repair or expand the grid.

• Security: Components sourced from overseas can be tampered with, introducing hidden backdoors or vulnerabilities that can be exploited later. NERC emphasizes that "contractual security relationships need to be recognized and developed into ongoing collaboration and custodial partnerships" to mitigate this risk.industrialcyber

The Human Element: A Widening Workforce Gap

Compounding these technical challenges is a critical shortage of skilled cybersecurity professionals. The NERC report notes, "An inability to develop and maintain a cybersecurity workforce for the electric industry is a critical risk". As the current workforce ages, there is a real danger that industry-specific knowledge of operational technology (OT) will be lost. This talent gap makes it harder to identify, mitigate, and respond to the increasingly sophisticated cyber threats facing the grid.industrialcyber

In conclusion, the NERC 2025 report paints a picture of a power grid under immense pressure from multiple, interconnected fronts. It serves as an urgent call to action for industry leaders and policymakers to move beyond traditional, siloed approaches and adopt a more holistic and resilient strategy for protecting North America's most critical infrastructure.

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