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You are here: Home / Carbon Markets / Takeaways from NERC’s 2024 Reliability Assessment

December 15, 2024

Takeaways from NERC’s 2024 Reliability Assessment

For summer 2024, NERC estimated that much of North America would remain at risk of supply shortfalls, with seven key areas, including portions of Texas, California, New England and the Midwest at particular risk. 

The North American Electric Reliability Corporation is a nonprofit dedicated to ensuring the stability of the continent’s grid system. Originally formed as the North American Electric Reliability Council and founded in 1968, its successor, also known as NERC, launched in 2006. 

The group’s mission is to “assure the effective and efficient reduction of risks to the reliability and security of the grid,” according to its website. NERC does so by working with industry stakeholders to develop standards for power system operation and ensuring compliance and maintaining an accreditation system for power system operators. 

Each year, NERC grades the stability, reliability, and durability of the electric grid system and any upcoming risks in reported assessments. The reports also evaluate the 10-year outlook for the system and provide key insights into possible vulnerabilities. 

For summer 2024, NERC estimated that much of North America would remain at risk of supply shortfalls, with seven key areas, including portions of Texas, California, New England and the Midwest at particular risk.  

Widespread heat events were also anticipated to put pressure on existing systems and supply. However, all areas of the continent were expected to have adequate supply for normal peak conditions, thanks to additional solar capacity added over the past year. 

In July, NERC and its six regional entities, together known as the ERO Enterprise, released a five-year reliability assessment, reviewing system performance between 2019 and 2023. In the assessment, NERC focused on ways in which the organization is adapting to rapid change in the electric industry, and the need for improved reliability and rigorous standards. 

“As the industry risk landscape evolves, it is essential that NERC and the ERO Enterprise 

perform as an agile and efficient team to create value for stakeholders across risk identification, mitigation, and standards development processes,” NERC writes in the report. 

One area in which NERC focused its work during the assessment period was on cybersecurity. As the threat of cyberattacks rises across the electric grid, governments must better secure grids and patch vulnerabilities to ensure stable and continued supply. 

NERC developed six new reliability standards related to cybersecurity issues over the past four years. The organization is also still currently working on other cybersecurity-related projects, such as evaluating the extent to which non-U.S. entities might gain control of public electric system resources. These types of projects help NERC to better understand how to create systems, standards, and processes to protect against such cyberthreats. 

In 2022, NERC, through its Electricity Information Sharing and Analysis Center, joined the Department of Energy’s Threat Analysis Center pilot, “ a new venue that 

reviews and exchanges intelligence and shares information within the energy sector,” according to the assessment report. Participation in partnerships like this allows NERC and others in the industry to better communicate when threats arise or the risk of a cyber or physical security breach could be imminent. 

Over the past four years, NERC also put increased attention and efforts in preparing the electric grid system to contend with extreme weather. The organization found that extreme cold weather impacted the reliability of the grid system in 2011, 2014, 2018, 2021, and 2022. 

Given these growing impacts, during the recent assessment period NERC prioritized the development of cold weather standards. This includes standards related to generator reliability and natural gas fuel issues, the latter of which was the second biggest driver of generator outages during Winter Storm Uri in 2021. 

Based on preliminary assessments during the 2023-2024 winter season, NERC found that its advocacy, alerts, standards, and guidance helped the country better mitigate threats posed by major winter storms. 

When it comes to enhancing processes for the future, NERC noted in the assessment that it is evaluating the future applicability of automation. The technology could potentially be used for tracking, notifications, and visibility purposes. 

NERC is tasked with producing multiple assessments throughout the year. Later this year, it will publish a congressionally mandated interregional transfer capability study, which will “analyze the amount​ of power that can be moved or transferred reliably from one area to another area of the interconnected transmission systems,” according to NERC.

The report must be filed with the Federal Energy Regulatory Commission by December 2.  

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