Renewable energy firms face growing cyber risk

Renewable energy asset owners relying more heavily on digital systems during the current period of lockdown – and beyond – must adapt to increased exposure to cyber threats such as ransomware, denial-of-service and human error, according to GCube Insurance.

Recent cyber-attacks on global renewable energy businesses have underlined the scale and nature of this previously under-reported threat. 

The emergence of Covid-19 has led to an unprecedented lockdown worldwide, leading many renewable energy companies to take advantage of remote monitoring systems and working practices to try and ensure ‘business as usual’ despite the disruption.

Though cyber-attacks such as ransomware and denial-of-service remain significantly under-reported in the renewable energy industry, recent high-profile examples in the UK, the US and Portugal have provided additional public demonstration of the exposure and disruption caused.

Geoffrey Taunton-Collins, Senior Analyst at GCube, said: “Digitalisation of course drives significant efficiency gains for businesses and is now a necessity for renewable energy companies looking to maintain continuity during the Covid-19 pandemic. But with portfolios now at greater risk of cyber-attacks, we are seeing even greater demand for our cyber insurance product as project owners are increasingly realising the very real threat that cyber-attacks pose.”

GCube’s research suggests that though cyber-attacks are estimated to be responsible for over $3 trillion in losses annually - and are set to rise - the cyber insurance market last year was only worth approximately $5 billion, with many insurers not yet providing cyber cover.