Bob Kirchner
Managing Director
Energy & Cyber Services

Bill Lawrence, PhD
Chief Technology Officer
Energy & Cyber Services

  EET&D   :  Right now, a lot of our readers are probably asking themselves: “Lockheed Martin in the energy industry? They build airplanes, don’t they??” It’s a legitimate question, so we should probably start with a little background on the company itself. Then we can move on to the specifics of why you’re in the energy industry and what you bring to the party. I think a lot of them will be more than a little surprised at how much you’ve already done in this field and where LM is headed as we go forward.

  Kirchner   :  Yes, we get that a lot, Mike. Most people quickly recognize our name, but there are still many – perhaps most in the energy industry – that don’t get the complete picture of who and what we’re really all about. Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 133,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation’s 2009 sales from continuing operations were $44 billion, including broad scale support to DOE and other federal agencies. As new technologies such as distribution automation, renewable energy and AMI have emerged, we see an opportunity to help realize the benefits of those technologies in ways that are both cost effective and secure.

  EET&D   :  How and where do you see the bridge between your government business and your commercial business flowing?

  Kirchner   :  Drawing upon a full range of energy solutions provided to the government and industry – including the Department of Energy, Environmental Protection Agency, state and regional energy organizations, utilities and businesses – we believe that the technical expertise, operational insights and systems integration experience gained by designing and fielding complex systems for the national defense community can provide tremendous value in helping the energy industry implement secure scalable solutions, optimize critical resources, and manage risk.

  EET&D   :  What do you see as some of the major energy industry trends?

  Kirchner   :  Our nation faces unprecedented challenges to its electric grid as growing demand for electricity puts ever-increasing stress on an aging grid infrastructure. Much of the electric grid, built more than 50 years ago, has not benefited from the innovations that have revolutionized other American industries. Unless we address these challenges soon, consumers and industries will be seriously impacted by unreliable (or unavailable) power, resulting in risk to our quality of life, economy and national security.

  EET&D   :  What about energy policy? Do you feel that we’re headed in the right – or at least a pragmatic and workable – direction in that regard?

  Kirchner   :  Aggressive federal and state policies and energy initiatives, Renewable Portfolio Standards (RPS), and federal cyber security initiatives constitute some of the key drivers in the energy industry today. Approved in 2007, the Energy Independence and Security Act (EISA) laid the foundation for characterization and implementation of the Smart Grid, but at the end of the day, the energy industry itself must determine the best course of action and articulate that vision to the policymakers at the federal, state and local level, and we’d like to help. This is not a new dialog by any means, but it is one that needs strengthening, and I personally believe that we’re making excellent progress on that front. One of the best examples is the collaborative role that NIST (National Institute of Standards & Technology) has taken on recently in standardization and interoperability.

  EET&D   :  What are some of the specific areas Lockheed Martin is working in the energy sector?

  Kirchner   :  Well, we could probably fill the rest of this article with the full list of projects we have planned or already under way, but partnering with a broad range of industry-leading utility companies to create long-lasting, high-value smart grid services that are standards compliant, efficient, scalable and secure is certainly a priority for us. As you know, we’re providing a diverse set of energy solutions to both the government and industry. Our customers include DOE, the Environmental Protection Agency, as well as several state and regional energy organizations, and of course, utilities and related businesses. I’ll let Bill elaborate on a few of the specifics…

  Lawrence   :  We’re very proud of the work we have under way with various customers to address the nation’s challenges in the energy field. These include major markets such as Energy Efficiency and Energy Management & Storage as well as some very broad areas like Alternative Energy Generation, Climate Change, Advanced Metering Infrastructure (AMI), and of course, Security – both physical and cyber.

  EET&D   :  We can’t possibly cover all of those things – as Bob correctly pointed out – but let’s go a little bit deeper on a couple of the more high-profile topics that everyone wants to hear about. Let’s start with Energy Efficiency; what is your role or direction there?

  Lawrence   :  To support our nation’s energy goals, our vision starts with energy efficiency – the cleanest, cheapest, and most readily available energy source. Lockheed Martin is one of the nation’s largest implementers of utility energy efficiency programs. In fact, we run seven projects named by the American Council for an Energy-Efficient Economy as outstanding programs to help commercial, industrial and residential customers reduce energy use.

  EET&D   :  What about Alternative Energy Generation; what’s going on in that field? It seems like that could be an area where some of your “rocket science” might actually be applicable. Is that a fair assumption?

  Lawrence   :  Yes, it really is a valid assessment of how a company like Lockheed Martin – which I think you can safely say really is a “rocket science“ company – can bring resources and people together in ways that are difficult to do on a smaller scale. That vision continues with leveraging our innovations and manufacturing capabilities to research, design and produce the next-generation of alternative energy solutions. For example, applying missile defense radar tracking software to concentrated solar energy collection systems to follow and capture more energy from the sun. As we said, some of this really is rocket science.

  Kirchner   :  Other examples include applying composite manufacturing processes from space programs to capture energy from the depths of the ocean using Ocean Thermal Energy Conversion (OTEC). And we’re using advanced LIDAR technology to develop high fidelity wind tracking and forecasting for wind generators.

  EET&D   :  Many people have said that renewables like wind and solar will never be able to achieve their full potential without some type of grid storage capability. What are you doing in that arena?

  Lawrence   :  That’s absolutely right. In the near future, this new mix of traditional and alternative energies will need to be smartly and securely stored, managed and distributed to consumers. Lockheed Martin teams are leveraging command-and-control, systems integration, and cyber security expertise to make that vision a reality. Also, space-based climate monitoring – an area that Lockheed Martin has been supporting for 50 years – will ensure that our nation and the world are making positive progress. We have already designed and built numerous environmental monitoring spacecraft. Moreover, our data systems expertise can help manage, store and analyze environmental information quickly, efficiently and reliably.

  EET&D   :  Smart Grid solutions rely on tightly integrated technologies to enhance critical operations like demand response and outage management, while delivering energy efficiency and reliability. Can you offer a few examples of the Smart Grid technology areas that Lockheed Martin has been directly helping electric utilities to address?

  Lawrence   :  Sure. Those areas include Advanced Metering Infrastructure, Distribution Automation, Micro-grids and Cyber Security, just to name a few of the most prevalent markets and applications where we play an active role directly with utilities. I might also point out that cyber security is more than a core competency for us – it’s a way of life.

  EET&D   :  Maybe it’s obvious to some, but I think there are a lot of readers that would ask why cyber security so important at your company?

  Kirchner   :  I guess the over-arching reason is that we see cyber security as a critical crosscutting enabler for all Smart Grid technology. It provides the secure controls necessary to realize the benefits of Smart Grid technologies while maintaining a strong security posture. The electric grid, once a collection of isolated manual devices, is becoming an even more highly connected network with millions of access points and ever-increasing vulnerabilities. Cyber security provides a series of defense mechanisms at the device and network levels to mitigate those vulnerabilities, securing the Smart Grid against a wide and variable range of threats.

  EET&D   :  The Department of Energy (DOE), the Federal Energy Regulatory Commission (FERC), the North American Electric Reliability Company (NERC), and public utility commissions and public service commissions all across the country have made cyber security a top priority for Smart Grid deployments. And NIST has been tasked with identifying and evaluating not only existing standards, measurement methods, and technologies but, more importantly, identifying the potential gaps where new standards, methods, and technologies will be needed to facilitate Smart Grid adoption. Where do you see yourselves fitting into that myriad set of challenges and opportunities?

  Kirchner   :  Lockheed Martin has been a leading security company for decades – for both IT and for control systems. We consider the safety, security and reliable provision of clean and abundant energy to be one of the highest priorities of our country and our world. As such, we have redesigned and tailored our security and cyber solutions to fit the energy industry, and we are currently working on security and cyber programs with a host of energy companies at various points all across the grid.

  EET&D   :  What are some of the major cyber security challenges and trends you see in the electric utility industry?

  Kirchner   :  For starters, there will be far more interconnections between previously separated utility systems and with other entities as we go forward; that much is inevitable. And by doing so, Smart Grid deployments bring millions of new “hackable” points online, creating a much increased possibility for an adversary to do harm from a distance.

  Lawrence   :  Not only that, but there are also a lot of pitfalls that we have to become more aware of and work harder to mitigate. For one thing, those looking to do harm to our critical infrastructure can be persistent – these aren’t just a few isolated cases. Most utility security leads will tell you that attacks are persistent and take place around the clock, 24/7/365. But there are also inherent threats that while not necessarily malicious themselves, can greatly increase vulnerabilities.

  EET&D   :  What do you mean by “not necessarily malicious themselves” in this context?

  Lawrence   :  Under normal circumstances, a lack of spares for key system components; the absence of rapid and accurate threat data; lax password management; and compliance uncertainties will not necessarily cripple or bring a system down, but in today’s widely exposed operating environments, these are all potential threat accelerators.

  EET&D   :  How do you see these challenges translating into present industry trends, and what are the resulting implications?

  Kirchner   :  Well, let’s see; there is quite a lot going on, but I’ll try to hit on the most important ones – but in no particular order… We see increasing regulation of the cyber aspects of digital assets and also a ramp up in the use of networked digital equipment. Standardization is another key trend that is likely to continue. NIST has made substantial progress, but we still have multiple standards authorities, and in some cases, multiple standards that apply in a given scenario. This is causing some conflicts and confusion as the guidance continues to evolve. We are confident, however, that this can be worked out over time. Bill, go ahead and jump in on this…

  Lawrence   :  We also see increased reliance on suppliers to provide secure hardware, software, and control system components – and the integration thereof – to users in a more complete and seamless fashion. Until now, we’ve seen quite a lot of piecemeal solutions, but the trend is definitely toward a more holistic approach. This is sometimes hindered by the involvement of multiple, incongruous contractors, but we think that will change too. Taking a stove-piped approach to security by not testing the entire system environment will simply not get the job done in the complex systems environment we have today.

  EET&D   :  Okay, so then, what are the likely implications or outcomes of these trends?

  Kirchner   :  Maybe the issues really aren’t so much about implications as things that need to change. Today, for example, end-to-end security may not be considered – that’s a major shortcoming that won’t go away – it will only become more of an issue if something isn’t done to mitigate potential vulnerabilities. It’s really one of those “weakest link in the chain” problems.

  Lawrence   :  Yes, and right along that same line of thought we also see inconsistent threat scenarios within an organization; inconsistent and localized interpretations of IT, non-IT, and control/ safety/system risks; siloed approaches leading to redundant compliance and reporting initiatives; error-prone manual tracking of vulnerability analyses; and lack of effective security metrics and performance measurement techniques.

  EET&D   :  It’s clear that you have put a lot of thought into the multi-faceted problems of this highly complex area, so what’s so different about Lockheed Martin’s approach to cyber security for the energy industry?

  Kirchner   :  First and foremost, we integrate security into everything we do. We actively draw on the experience, tools and approaches we’ve developed to defend some of our nation’s most secure systems, including our own Security Intelligence Center, to tailor advanced operational situational awareness and cyber security capabilities in a joint project with AEP in Columbus, Ohio. We’re also collaborating with DOE and a broad group of utilities and other industry stakeholders to identify the technologies, practices and policies that best enable threat and information sharing, a critical component of the overall cyber security approach. Finally, as electric utilities address the challenges of transforming legacy operations into highly automated, information-rich systems that enable the Smart Grid and all of its benefits, we are helping utilities meet those objectives with a full suite of cyber security services.

  EET&D   :  How would you summarize the cyber security capabilities and approaches that Lockheed Martin brings to the energy industry?

  Kirchner   :  Among other capabilities, our smart grid cyber security experience and capabilities include proven expertise in distribution automation, alternative energy, power and control systems, and data integration and analysis. We bring powerful tools for modeling, analysis and situational awareness, which are already providing value-added results today. We also offer unparalleled cyber security/ information assurance resources including our NexGen Cyber Innovation and Technology (NCITe) Center, a world-class Security Intelligence Center for network defense, and a large staff of highly experienced, trained, and certified information assurance professionals.

  Lawrence   :  I’d also like to add that while we often focus on the delivery of critical solutions and technical services, our approach to cyber security is grounded in policy, architecture development, and secure, assured development practices. From this diverse orientation, we success­fully help our customers manage risk and make optimal decisions for practical appli­cation of resources. Our processes cover end-to-end, full life-cycle cyber security, including real-time cyber operations. Rock-solid systems engineering and guaran­teed interoperability based on decades of experience with complex multivendor proj­ects are also some strengths we bring that are not easily reproduced.

  EET&D   :  Can you offer some specifics of how these underlying strengths translate into sustainable advantages?

  Kirchner   :  We focus on the big picture by effectively blending technology, processes, systems and industry teams, to create original solutions to mitigate or manage risk. By leveraging our exemplary system engineering and software development practices, methodologies, and processes, we are able to deliver solutions that are “secure by design.” Development, testing, and quality management assure customers that their applications and systems will perform as desired. This is attributable to our rigorous independent validation and verification services.

  EET&D   :  What about deployment? Is any of this capability available today?

  Lawrence   :  Lockheed Martin has a proven track record of deploying large, complex solutions across geographically dispersed organizations. We match deployment methodologies and processes appropriately with each unique enterprise’s mission requirements. We already manage major security and network operations centers nationwide. Our experience in government service delivery has helped us partner effectively to bring significant economies of scale and enhanced, assured operations, to many diverse customers. We also staff and operate Computer Emergency Response Teams (CERT) for many of our mission critical customers and have successfully applied these lessons to dozens of utilities and equipment manufacturers.

  EET&D   :  Bob, I’ll let you have the last word on this. How would you sum up the massage you’d like to get across to our readers regarding the expectations they should have about Lockheed Martin’s role in Smart Grid and Grid Transformation initiatives?
 
  Kirchner   :  A resilient, scalable and secure grid is essential to giving our world abundant, clean and affordable energy. We’re committed to helping the industry achieve this important mission.