In recent years, security of energy supplies has re-emerged as a major policy concern.
At the same time, there is a growing concern with regards to the physical and cyber
security of critical infrastructure of strategic importance such as telecommunications,
water supplies, transport systems, and energy supplies. Physical and virtual networks
serve as the nerve system of critical infrastructures and, while vital for the functioning
of these facilities, due to their geographic spread, they are vulnerable to natural disasters
and malicious threats. As the modern economy are increasingly dependent on reliable
but increasingly complex network infrastructures, the vulnerability of these and the cost
of potential failure also increase. This chapter focuses on the economics, regulation, and
policy aspect of the security of energy networks.