NERC Opposes Extra Grid Security

The American electricity grid has seen an uptick in physical assaults over the last few years. But the North American Electric Reliability Corp (NERC) has concluded that its physical security rules for critical power substations shouldn’t be expanded to include more infrastructure on the grid.

“While NERC stopped short of recommending a broad expansion of its physical security rule, it did acknowledge the growing threat and need for additional study and action,” reports Utility Dive.

In 2022, the Electricity Information Sharing and Analysis Center received reports of almost 1,700 incidents related to physical security—a 10.5% jump from 2021. The incidents were mostly classified as gunfire, ballistic damage, intrusion, tampering, and vandalism.

“Given the increase in physical security attacks on BPS substations, there is a need to evaluate additional reliability, resiliency, and security measures designed to mitigate the risks associated with those physical security attacks,” NERC said.

“[T]he gist of this announcement is that operators must conduct physical risk assessments of substations,” Mike Hamilton, chief information security officer of Critical Insight, told Utility Dive.

Still, NERC's physical security reliability standard, CIP-014, will probably need updating at some point to beef up substation physical security, according to Hamilton.

Treasury Cuts Some EVs From Team

The US Treasury Department has removed nine electric vehicle (EV) models from the list of cars eligible for a $7,500 tax credit under the Inflation Reduction Act; to qualify, cars must be assembled and their batteries built in North America.

The new sourcing requirements were introduced to balance President Joe Biden’s electrification goals with clean energy domestic manufacturing goals, as well as reduce reliance on China.

“The list of eligible vehicles, posted on the Energy Department and EPA’s FuelEconomy.gov website, still includes popular models built by Tesla, General Motors, Ford and Stellantis, such as the Tesla Model 3, Chevrolet Bolt and the Ford Mustang Mach-E. The department has been narrowing the list over a period of months,” reports E&E News. “More than 90 percent of EVs sold in the first quarter of the year that were eligible for federal tax credits will still qualify under the latest criteria, Treasury estimates. About 65 percent of all EVs sold in the first quarter were eligible for tax credits under the IRA’s rules limiting the subsidy to cars manufactured in the U.S. and under certain price caps.”

More changes to the list are anticipated in 2024 and 2025 as the Treasury enforces the Inflation Reduction Act’s ban on batteries and minerals from “foreign entities of concern.”

Gazprombank and India Deepen Ties

Trade between India and Russia has risen due to the Western sanctions imposed on Russia following its invasion of Ukraine. The upshot? Russia is now the largest supplier of crude to India.

“The growing relationship has been expedited with Russia's Gazprombank playing a pivotal role by expanding their links with banks in India to facilitate trade between the two countries in national currencies,” reports Oilprice.com.

Gazprombank is Russia's third-largest lender and an important conduit for the Russian energy trade. This deepening trade relationship with India is tipping the trade balance between the two countries in Russia's favor.

The ability to trade in national currencies is gaining importance—a trend that could potentially shakeup the global financial system by circumventing the US dollar.

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1. Britain is leaning into renewables. “The Contracts for Difference (CfD) scheme is the government's mechanism for supporting new British low-carbon electricity generation projects, such as offshore wind and solar projects,” reports Reuters. “Under CfD, generators are guaranteed a fixed, pre-agreed price for the electricity they provide over the term of the contract and sell their low-carbon energy into the market.The scheme to-date has supported 26.1 gigawatts (GW) of low carbon projects, but the government said changes were needed ‘in face of the deployment challenges currently faced by the renewable energy industry.’”

2. A Canadian oil sands mine has hit a green snag. “The Alberta Energy Regulator is reconsidering approval of a plan allowing Suncor Energy Inc. to extend its Fort Hills oil-sands mine into nearby wetlands after pressure from an environmental group. The AER in September approved Suncor’s plan for protecting certain portions of the McClelland Lake Wetlands Complex, a necessary step for allowing mining to expand in the area. The agency said in an email that it’s now reconsidering that approval,” reports Bloomberg. “The Alberta Wilderness Association had asked the regulator to revoke the permission after finding deficiencies in Suncor’s plan that pose ‘a serious risk’ to the wetlands.”

3. Dark times for Sudan and its oil exports. “Landlocked South Sudan’s oil could be at risk as clashes between the army and a paramilitary group in Sudan continued for a third day Monday, with the risk growing that this could turn into a full-blown civil war. Sudan exclusively exports crude oil produced by landlocked South Sudan,” reports Oilprice.com. “No indications have yet emerged that oil exports have been affected; however, previous uprisings in Sudan have taken barrels off the market.The Rapid Support Forces (RSF), a paramilitary group, took up arms against the Sudanese army in the capital Khartoum over the weekend, according to Al Jazeera. In a Facebook post on Monday morning, the army said that one group of RSF fighters had surrendered to the country’s armed forces. At least 97 civilians have been killed in three days of clashes, according to the Central Committee of Sudanese Doctors, cited by Bloomberg.”

Crom’s Blessing