Christian Ward and Paul Graham, Fieldfisher
05/03/2025
Growing cyber security threats in the energy sector and how businesses stay resilient
In 2023 alone, 90% of the world’s largest energy companies suffered cybersecurity breaches, with critical infrastructure becoming a primary target for state-sponsored hackers and cybercriminals. The energy sector's increasing reliance on digital systems has made it a prime target, and the consequences of a successful attack can be devastating, from disrupting power grids to crippling supply chains.
According to the recent IBM Cost of a Data Breach report, the average cost of a data breach to a business in 2024 was over $4.8 million — a staggering 10% increase from the previous year and the highest total ever recorded. Beyond financial losses, energy firms face regulatory scrutiny, reputational damage, and operational disruptions.
The UK and EU are particularly vulnerable due to geopolitical tensions, regulatory changes, and rapid technological advancements. With energy companies central to national security and economic stability, strengthening cybersecurity has evolved from being optional to absolutely essential.
This article is written ahead of the RenewableUK Cyber Security Seminar, which will be held at Fieldfisher HQ in London on 25 March. This event is led by the UK's largest renewable energy trade organisation, RenewableUK.
Both Ofgem and the National Cyber Security Centre will be speaking in this event that aims to tackle the pressing cyber security challenges facing the renewable energy industry.
In this piece, Fieldfisher experts in cybersecurity and energy law provide crucial insights into why this topic is so important and how businesses can protect themselves against emerging threats...
Cyber Security Seminar 2025
Why cyber criminals target the energy sector
The energy sector is highly reliant on effective cybersecurity, as the complex flow of electrical data across generation, transmission, and distribution is vital for operations. Digitalisation is now at the heart of the industry, and as energy companies integrate more advanced technologies, their exposure to cyber risks increases.
In 2022, an IBM Security Report identified the energy sector as the UK’s top target for cyber-attacks, accounting for 24% of all cyber-attacks in the country. More recently, Richard Horne, Head of the UK's National Cyber Security Centre, warned that UK businesses are facing growing cyber risks. According to the UK Government Cybersecurity Breaches Survey 2024, over 50% of UK businesses experienced a cyber breach or attack in the past year, and over 75% now consider cybersecurity their top priority.
The sector is an attractive target for cyber criminals due to its reliance on interconnected digital systems and critical infrastructure. A single attack can disrupt power grids, cripple supply chains, and cause widespread economic and social consequences. Energy firms in the UK and EU are increasingly targeted by sophisticated phishing campaigns, malware, and AI-driven attacks. These attacks not only jeopardise operations but also expose businesses to financial losses, regulatory fines, and reputational damage.
Growing regulatory pressures
Governments and regulatory bodies are tightening cybersecurity requirements to protect critical infrastructure. The UK’s National Cyber Strategy and the EU’s NIS2 Directive impose stricter obligations on energy companies to enhance their security frameworks. Non-compliance can result in severe penalties, making it imperative for businesses to stay ahead of regulatory developments and implement best practices.
As the threat landscape evolves, companies must ensure compliance with these regulations while also building a robust cybersecurity strategy that goes beyond mere compliance.
How AI and advanced cyber security strategies can help
Artificial Intelligence (AI) is proving to be a game-changer in detecting and mitigating cyber threats in real-time. AI-driven security systems can process vast amounts of data, identify anomalies, and predict potential breaches before they occur. This proactive approach significantly reduces the risk of attacks. By integrating AI with traditional cybersecurity practices, businesses can bolster their defences and react quickly to emerging threats.
For example, AI can help monitor patterns within network traffic, detect unusual behaviours that may indicate a cyber-attack, and even respond autonomously to threats. This combination of human oversight and AI-driven tools makes a comprehensive cybersecurity strategy more robust and resilient.
The most common cyber security threats to energy companies
As energy companies continue to embrace digital transformation, they face an increasing array of cybersecurity threats. Some of the most common risks include:
- Phishing: Attackers trick employees into revealing sensitive information or credentials via fake emails or websites. This is often the entry point for larger attacks.
- Ransomware: Malicious software encrypts an organisation’s data, demanding a ransom for its release. This type of attack can halt operations and cause significant financial loss.
- Malware: Malicious programs infiltrate systems to disrupt operations, steal data, or damage infrastructure, posing both short-term and long-term risks to critical assets.
- DDoS (Distributed Denial of Service) Attacks: Cybercriminals overwhelm company networks with excessive traffic, causing system failures or downtime. This can cripple services and erode customer trust.
- Data leakage: Sensitive data may be inadvertently exposed due to weak security practices or insider threats. This type of breach can lead to significant reputational damage.
To effectively defend against these evolving threats, energy companies must adopt comprehensive cybersecurity practices that are integrated into all areas of their operations. A strong cybersecurity framework not only protects a company’s assets but also allows for business growth. When an organisation can operate without the disruption and costs associated with breaches, it can focus on proactive business development and innovation.
Building a resilient future for the energy sector
As governments push for cleaner energy generation and impose stricter regulations, energy firms must ensure their cybersecurity frameworks are continually updated and reviewed. By focusing on cybersecurity at both operational and board levels, energy companies can view it as not only a safeguard but also a strategic asset that contributes to business performance and continuity. Paul Graham, Partner and Head of Fieldfisher's Telecoms Practice emphasises that “Effective cybersecurity enables organisations and the sector as a combined unit to defend against emerging threats, strengthen resilience, and enable growth and agility to continue.”
Key takeaways for energy executives
To stay resilient and competitive, energy companies must focus on three key areas:
- Resilience: Prioritise cybersecurity excellence to maintain continuity of operations.
- Regulatory Compliance: Stay ahead of UK/EU National Infrastructure regulations to avoid penalties and meet legal requirements.
- AI Integration: Leverage AI as a critical component of any cybersecurity strategy to improve operational performance, service delivery, and overall security.
The cyber threat landscape is evolving rapidly, and energy companies must adopt a proactive and adaptive approach to cybersecurity. By leveraging AI, staying compliant with regulations, and fostering industry collaboration, businesses can safeguard their operations and ensure energy security for the future.
Is your energy company prepared for the next wave of cyber threats? Join us at the RenewableUK's Cyber Security Seminar to learn how to strengthen your defences and stay ahead of emerging risks.
