Securing the Smart Grid with Hardware Security Modules

Abstract

Security vendors have a major role to play in today’s smart grid ecosystem. Because the smart grid network includes intelligent endpoints and network devices that collect and relay information to a utility’s back office via an IP network, there are inherent security and risk concerns. Critical energy information flows through various interconnected networks like home network, public network, and utility network. Hence, it needs to be encrypted. Not only is it critical to encrypt the flow of information between the utility and devices on the grid, but it is also important to guarantee the integrity and the authenticity of each communication. Today’s cryptography guarantees the security of various data, so the way electronic transactions are processed completely meets demands for confidentiality, integrity, and identity (authenticity). However, the encrypted data are not protected effectively until the computer systems on which these electronic transactions get processed are also fully secured. Securing these computer systems clearly includes caring for the security of cryptographic keys being used to encrypt and sign respectively decrypt and verify transaction data. A solution to achieve this has been developed using Hardware Security Modules (HSM). This paper exposes some of the security features, requirements and best practices why utility industries should consider acquiring an HSM solution to better secure the smart grid.