We are all well aware of Russia’s invasion on the Ukraine, how does that have an effect on the Automation industry worldwide.
Energy
Troops blew up a gas pipeline close to Kharkiv, Ukraine’s second-biggest city. Russia claims to have control over Chernobyl nuclear power plant. On 2 March, Russia claimed to have taken over the vicinity surrounding the 5.7GW atomic power plant in Zaporizhzhia, Europe’s most significant. A fire broke out on the plant the following day. Two major hydropower plants seized in Kyiv and another one in Nova Kakhovna, in the country’s south, raising the alarm over possible major blackouts. After Russian air strikes, two oil depots in Zhytomyr were set on fire on 7 March.
The battle on Ukraine is effecting their ability to maintain energy infrastructure, from power plants and grids to gas pipelines, as the ‘toolbox’ of hybrid war techniques grows. “Hybrid tactics are a combination of conventional and non-conventional tools, hidden and evident, online and physical, aimed at destabilising, disorienting people with the aim of spreading panic.” reported Sofiia Shevchuk (an independent security and foreign policy expert).
The power industry has the third-highest sector that does not deploy protection security automation which in this case could proof a huge problem if attacked. While Europe became more organised and more resilient to cyberattacks, hackers and state-backed corporations pose a threat here, in the Ukraine.
“We fear Russia’s cyberattacks have intensified on critical energy infrastructures and this will only intensify in the coming weeks and months ahead,”
“It could get restored relatively quickly by pushing some buttons, something that western Europe, with a much more digitalised and centralised system, would not be able to do,” – Umbach.
The power system of Europe became decentralised because the EU constructed its renewable energy capacity. This move added extra resilience against significant cyberattacks. Moreover, because the energy and digital transitions became more intertwined, the European Commission has considerably combined cybersecurity into its energy policies.
The European Network of Transmission System Operators is getting ready for a Network Code on Cybersecurity, with the goal to set a European standard for the cybersecurity of cross-border energy flows. This consists of regulations on cyber risk assessment, standard minimum requirements for the cybersecurity of vital infrastructure, cyber-secure goods and services, monitoring, reporting, and disaster management.
In a worldwide context of hybrid threats, Nato has additionally stepped up its efforts and incorporated the safety and resilience of vital power infrastructure, in addition to cyber threats, into its activities.
For EVs
The war is pressuring metal markets. Russia controls more or less 10% of worldwide copper reserves and is likewise a giant manufacturer of nickel and platinum. With the price pump of metals and minerals like nickel and lithium, EV prices will surely increase.
Also, Musk advocates for dormant nuclear power plants to be added again into operation as he states the need to increase oil & gas output immediately, as he quotes, “Extraordinary times demand extraordinary measures.” EVs have to be driven for 1-2 years to offset the CO2 footprint of the nickel manufacturing for your BEV. This raises questions around claims of green metals.’ How green are they when you count the numbers of de-forestation effects in Indonesia and Tanzania and the coal-powered smelting process?
For Logistics
In the field of transportation, the effect won’t simply be on gasoline prices. Carriers, freight forwarders, and shippers dealing with China to North America trade lanes had already been in crisis mode from the Pandemic and it isn’t getting better with the invasion, it will create new constraints on Asian ocean and air exports with higher spot container pricing.
Expect that Sea and Air cargo fees will skyrocket if ship berths cannot be found. The prediction is that the price will be doubled or, worse, tripled. Lead times will also increase 3-4 times.
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Article inspired from thedriven, energymonitor and forbes.
