U.S. electric industry experts and trade groups say utilities need new tools and regulatory authority to protect the grid from drone attacks.

The issue has become more urgent recently. The U.S. Department of Homeland Security has reportedly urged American energy companies to strengthen security against potential threats from Iran. Since the U.S. and Israel went to war with Iran on February 28, Iran has repeatedly used drones to successfully attack U.S. military personnel and assets.

A report released this week by the North American Electric Reliability Corporation (NERC) notes that grid asset owners and operators have "growing concerns" about attacks by "unmanned aircraft systems" (UAS) and their "ability to protect critical assets and infrastructure."

The report is an assessment of NERC's eighth biennial grid security exercise, GridEx VIII. Held in November, the exercise aimed to evaluate grid security, including the resilience of the North American power system against coordinated attacks by nation-state adversaries.

Hundreds of organizations stress-tested emergency preparedness protocols and developed response plans for hypothetical scenarios. One scenario involved multiple drones simultaneously attacking a nuclear power plant's switchyard and a substation.

The report says participants noted that different government agencies have issued "multiple directives" regarding drones, covering which laws and regulations apply to detection and which technologies can be legally deployed.

The report states: "Collaboration between industry and government partners will help better understand asset owners' or operators' concerns about drones and how the government can support asset owners or operators when a threat is imminent or occurring."

"Currently, utilities use detection capabilities to establish baseline traffic flows near critical assets, but can only respond after a drone has safely landed, which is often too late."

—Kimberly Mielcarek, Vice President of Corporate and External Communications at the North American Electric Reliability Corporation

Drones have become ubiquitous in modern warfare, from Ukraine to the Middle East. The U.S. military has found drones to be a difficult threat to counter—and even well-funded utilities do not have the budget of the U.S. military.

"The grid was never designed with aerial threats in mind," said Charlie O'Connell, Chief Commercial Officer of airspace security company Fortem Technologies.

The U.S. grid has been attacked by drones before, but the threat is relatively new. In 2021, federal law enforcement warned state and local officials that a drone crash the previous year appeared to have been modified to "specifically target energy infrastructure."

Since then, the threat has grown as technology evolves. O'Connell said small drones are "cheap, readily available, and increasingly capable, meaning utilities now need to consider not just security inside the fence line, but also the airspace above critical infrastructure."

Federal airspace regulations limit utility countermeasures

NERC's report notes that grid asset owners and operators say efforts should be made to consolidate federal guidance to ensure consistency and clarity.

U.S. airspace is regulated by the Federal Aviation Administration (FAA), which "grants very few exceptions for intercepting unmanned aircraft systems, treating drones the same as any other aircraft," said Kimberly Mielcarek, NERC's Vice President of Corporate and External Communications, in an email.

"Due to these restrictions and penalties, utilities are reluctant to engage drones in flight," Mielcarek said. "GridEx discussions highlighted this industry-wide concern and the need for government partners to determine the safest and best ways to intercept drones over utility assets."

U.S. House Speaker Mike Johnson poses with an Iranian Shahed 136 military drone On May 8, 2025, U.S. House Speaker Mike Johnson (R-La.) spoke at a press conference on Capitol Hill in Washington, D.C., alongside an Iranian Shahed 136 military drone. Drones have become a hallmark of modern warfare, and the Department of Homeland Security reportedly warned energy companies to bolster security during the U.S.-Iran war.

Meanwhile, the drone challenge facing utilities is "evolving rapidly," said Melissa Swisher, Chief Revenue Officer of SkySafe, an airspace intelligence company focused on drone visualization.

Swisher said most drone incidents near critical infrastructure currently appear to involve surveillance or reconnaissance rather than direct attacks. But such reconnaissance could support more coordinated cyber or physical attacks.

"Drones present a new exposure domain for utilities," she said in an email. "The challenge is not reacting to a single drone sighting, but understanding patterns of activity and knowing what is happening in the airspace around critical infrastructure."

Utilities prepare for war while pushing for policy changes

Swisher said many utilities are exploring incorporating airspace monitoring and drone detection capabilities into broader physical security strategies, "alongside traditional defenses such as perimeter security, surveillance systems, and coordination with law enforcement."

The Edison Electric Institute (EEI), which represents investor-owned utilities, said in an emailed statement that utilities track multiple threats to the grid.

"While physical threats to the grid are not new, drones do present unique challenges," the statement said.

EEI said grid operators currently employ a "defense-in-depth approach" to protect critical grid assets from drone threats, including "counter-drone measures, limiting single points of failure, and responding and restoring assets if they are affected."

EEI also said it is pushing for "technology and policy changes" to enable utilities to restrict drone flights near critical facilities and allow companies to intercept drones entering their airspace.

According to Fortem's O'Connell, what utilities need first is "airspace awareness"—the ability to detect and track drones flying near their facilities. He said technologies such as compact radar and integrated command-and-control platforms can allow utilities to monitor low-altitude airspace around substations and generation sites. When suspicious activity is detected, utilities can coordinate with law enforcement and federal partners.

"The grid was never designed with aerial threats in mind."

—Charlie O'Connell, Chief Commercial Officer of Fortem Technologies

O'Connell also said the Fiscal Year 2026 National Defense Authorization Act, signed into law in December, expands domestic counter-drone authorities and establishes a framework for state and local law enforcement to "detect, track, and mitigate" credible drone threats.

"This change should make coordination between utilities and local authorities more feasible in the future," he said.

NERC's main recommendation on drones following GridEx is that U.S. and Canadian federal government partners should "work with industry partners to identify legally available technologies to counter drone threats and clarify available government support."

Additionally, the reliability regulator called on government agencies to clarify guidance on drones and available detection methods, and to further clarify the government support available to industry in the event of an incident or attack.

"Currently, utilities use detection capabilities to establish baseline traffic flows near critical assets, but can only respond after a drone has safely landed, which is often too late," said NERC's Mielcarek.