The ESSENCE project: a re-examination guided by emerging academic contributions

Improving power network security against cyber-attacks is paramount. The ESSENCE project evaluated the costs and benefits of implementing security standards, focusing in particular on the benefits of enhanced security, specifically in the form of avoidance of blackouts, intended as a non-market good. Drawing on a comprehensive literature review, we defined a mixed-method approach adopted for two distinct case studies: Italy (generation phase) and Poland (transmission network). For household users, we emphasize the rationale behind a stated preference method utilizing a Willingness-to-Accept (WTA) choice experiment. Conversely, for non-household users (industrial sectors), the utility of a production function approach is highlighted for calculating the Value of Lost Load (VOLL) based on macroeconomic data. Reexamining the ESSENCE project in light of recent literature underscores the vital importance of evaluating diverse and comprehensive outage costs in the assessment of power network security.