So, let's now bring IoT into the mix. You and I have smart houses, with smart solar tiles. John attacks our tiles plus all our neighbors and directs a major electrical spike towards our local substation. Now it's a physics question, where are all those joules of energy going? It's a heat problem and right now there is no way to dissipate that heat from the system which will melt our substation. Let's say our neighborhood is between several other neighborhoods and the main power station, we just killed a node and guess who else doesn't have access to power because they don't have tiles like we do.
That's the basic concept on why security and authenticity are important in relation to the energy grid. It would be nice if there was an effective way to dissipate an "electrical DDoS"? I'm not sure if it's called something else. If you're interested in the energy dissipation within the energy grid, this is a great question on SE. [2]
That all said, is also a major reason why the government is consistently freaking out about our power grid being hacked.
[0] https://en.wikipedia.org/wiki/Continental_U.S._power_transmi... [1] https://en.wikipedia.org/wiki/Northeast_blackout_of_2003 [2] https://electronics.stackexchange.com/questions/117437/what-...
Individual tiles could store and compute and cooperate in a mesh network.
To make something like that feasible, it needs to be secure and reliable. In the privately-owned case, I want to ensure that an adversary who gains access to the “grid” can’t exploit it against me. Think of it as having a raspberrypi on the outside of your house where anyone could tamper with it.
In the public scenario, you would want users to be able to offload computational tasks to an ambiantly available computational resource. Some of that computation will need to be local, and for disaster planning reasons, would be helpful if distributed in nature. But, in order for Joe and Jane Schmoe to rely on such a resource, they would want to know that their data isn’t being stolen or shared with others.