U.S. Department of Energy officials are investigating a potential threat posed by Chinese-manufactured equipment that performs a crucial function for the country’s renewable energy power infrastructure. The investigation follows the discovery of mysterious communication devices inside some solar panels and wind turbines used in electrical grids. Two sources familiar with the matter, who wished to remain anonymous, told Reuters about the discovery in a report published on Wednesday.
Why could this pose a problem?
The devices found are known as “power inverters,” which are used to connect solar panels and wind turbines to electrical grids. These devices are also commonly found in batteries, heat pumps and electric vehicle chargers. The vast majority of power inverters are reportedly made in China.
Officials said the inverters are manufactured to allow remote access for software updates and general maintenance issues. Energy companies that use these devices often install firewalls to prevent the power inverter from communicating information back to China.
The two sources Reuters interviewed said that officials are concerned because the power inverters they found were not disclosed in the product’s documentation. Instead, engineers who take apart the equipment connected to power grids to inspect for potential security issues found the devices.
Reuters reported over the past nine months, so-called “rogue communication devices” have been discovered in some batteries from a number of Chinese suppliers.
The officials did not disclose to Reuters how many solar panels or wind turbines were impacted nor the Chinese companies involved in installing the “rogue” devices.
What are the potential ramifications?
However, this rogue equipment has the potential to disrupt power grids. Tech experts said the technology could enable China to disable firewalls remotely, giving Beijing the capability to potentially harm power grids and cause “widespread blackouts.”
“That effectively means there is a built-in way to physically destroy the grid,” a person familiar with the matter told Reuters.
“We know China believes there is value in placing at least some elements of our core infrastructure at risk of destruction or disruption,” Mike Rogers, a former director for the U.S. National Security Agency, told Reuters. “I think that the Chinese are, in part, hoping that the widespread use of inverters limits the options that the West has to deal with the security issue.”
How have both parties responded?
A spokesperson for the Chinese embassy Washington D.C. spoke to Reuters.
“We oppose the generalization of the concept of national security, distorting and smearing China’s infrastructure achievements,” the spokesperson said.
The U.S. The Department of Energy (DOE) also has concerns. The DOE said that while the devices function “may not have malicious intent, it is critical for those procuring to have a full understanding of the capabilities of the products received.”
What is being done about the problem?
While the U.S. companies potentially impacted by the rogue inverters have yet to be publicly disclosed, a pair of U.S. Senators introduced legislation earlier this year known as the Decoupling from Foreign Adversarial Battery Act. The bill prevents the U.S. Department of Homeland Security from obtaining batteries from Chinese companies, citing national security concerns. It takes effect in 2027.
The six companies that would be barred from business with DHS include Contemporary Amperex Technology Company, BYD, Envision Energy, EVE Energy Company, Lithium Energy Storage Technology and Gotion High-tech. Huawei, mentioned in the Reuters report, is no longer present in the U.S. market but remains a major supplier of inverters globally.
None of the companies mentioned above has commented on the Reuters report.
Have there been any notable instances of sabotage?
Reuters findings follow the disabling of solar power inverters in November in the United States and other regions from China. The incident underscores the risk of foreign adversaries disrupting electricity grids and has sparked concern among government officials, according to three people who spoke with Reuters. The number of inverters switched off nor how widespread the issue was has not been revealed and the DOE has declined to comment on the matter.
Some European nations have passed legislation to protect against potential rogue Chinese inverters within solar, wind and other battery energy sources, including Estonia and Lithuania.
