- US officials discovered hidden communication devices in Chinese-made inverters and batteries that could bypass cybersecurity protections and threaten grid stability.
- Lawmakers and utilities are responding by phasing out Chinese equipment and proposing a ban on batteries from major Chinese manufacturers by 2027.
- NATO and European countries are raising alarms over China’s growing control of critical energy infrastructure, prompting new reviews and restrictions.
U.S. officials have flagged a growing security threat in Chinese-made inverters and batteries linked to the national power grid.
Investigators found undocumented communication devices inside equipment from Chinese manufacturers. These components do not appear in official manuals. They can bypass cybersecurity firewalls set up by energy operators.
Inverters connect solar panels, wind turbines, and other renewable systems to the grid. They also power batteries, heat pumps, and EV charging stations. Chinese companies dominate the global inverter market.
U.S. energy experts regularly inspect devices installed on the grid. They identified hidden cellular radios and other communication tools inside Chinese systems. Manufacturers failed to disclose these additions.
These undocumented devices can create secret communication channels. Hackers or foreign actors could exploit them to change settings or shut down equipment. That kind of interference could disrupt grid operations and threaten energy stability.
The Department of Energy (DOE) has increased monitoring efforts. A DOE spokesperson said the agency is pushing for more transparency in energy products. DOE officials demand a “Software Bill of Materials” in new contracts. This document lists every software component in a system.
Amid rising U.S.-China tensions, utility companies have started reducing their dependence on Chinese gear. According to two industry insiders, Florida Power & Light began phasing out some Chinese inverters.
Congress also wants to cut ties. A proposed bill would ban federal agencies from buying batteries from six Chinese firms starting October 2027. The list includes CATL, BYD, and Gotion High-tech.
China resisted the allegations. Its embassy in Washington called the warnings “unfounded distortions” and accused U.S. authorities of politicising trade.
Despite the backlash, Chinese firms continue to lead the global market. Huawei supplied 29% of all inverters shipped worldwide in 2022, according to data from Wood Mackenzie. Sungrow and Ginlong Solis followed closely.
Europe also heavily relies on Chinese equipment. The European Solar Manufacturing Council reports that over 200 gigawatts of European solar power depend on Chinese inverters, which equals the energy output of more than 200 nuclear plants.
Some European governments have started taking action. Lithuania blocked remote access to Chinese systems above 100 kilowatts. Estonia and the United Kingdom began reviewing their energy infrastructure.
The energy sector still lacks clear cybersecurity rules. Unlike telecoms and semiconductors, energy regulators have not built strict safeguards. Most cybersecurity standards also exclude residential devices, which now supply more power to national grids.
NATO has voiced similar concerns. On May 14, a NATO official warned that China continues expanding its influence over critical infrastructure. “We must identify strategic dependencies and take steps to reduce them,” the official told Reuters.
As nations digitise their energy systems, officials say the threat from hidden foreign devices will keep growing. Governments must now move quickly to protect their power grids from hostile control.