Supply Chain

1. Supply Chain Security

1. 1. Executive Summary

Supply chain assessments identified significant risks associated with globally sourced inverter-based resources (IBRs) and battery energy storage systems (BESS). Limited visibility into hardware, firmware, and communications capabilities creates opportunities for malicious modification, hidden functionality, and unauthorized remote access.

1. 1. Key Findings

1. 1. 1. Undocumented Hardware and Communications

- Hidden cellular, Wi-Fi, and Bluetooth capabilities were discovered during field assessments. - Undocumented communications undermine assumptions regarding trusted deployments. - Hardware configurations did not always align with manufacturer documentation.

1. 1. 1. Supply Chain Visibility Gaps

- Utilities have limited visibility into sourcing, manufacturing, firmware provenance, and component supply chains. - Counterfeit or modified equipment remains difficult to identify and validate.

1. 1. 1. Security Control Weaknesses

- Default credentials remain common across deployed systems. - Many systems lack lockout, throttling, and credential-guessing protections. - Security approaches frequently rely on trusted environments instead of technical controls.

1. 1. Risks

1. 1. 1. Operational Risks

- Coordinated manipulation of IBRs and BESS could contribute to grid instability. - Unauthorized remote access may enable coordinated shutdowns and operational disruption.

1. 1. 1. Cyber Risks

- Wireless communications extend the attack surface beyond facility boundaries. - Cellular connectivity removes geographic constraints for attackers. - Supply-chain tampering may remain undetected throughout the asset lifecycle.

1. 1. Recommendations

1. 1. 1. Procurement Controls

- Require Software Bills of Materials (SBOMs). - Require Hardware Bills of Materials (HBOMs). - Validate vendor secure-development practices. - Require vulnerability disclosure programs.

1. 1. 1. Detection and Monitoring

- Perform wireless spectrum assessments. - Continuously inventory assets and communications pathways. - Establish supply-chain forensic and investigative capabilities.

1. 1. 1. Mitigation

- Disable unnecessary remote-access capabilities. - Eliminate default credentials. - Implement network segmentation. - Deploy multifactor authentication where practical.