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MIR (Modernization Innovation Research)

Economic assessment of reasonability of introducing quantum communications in the energy sector

Лобов Даниил Сергеевич

Published Sep 17, 2025• 0 citations
Publisher

Abstract

Purpose: evaluation of economic reasonability of quantum transformation of the information security function using the example of energy sector facilities. Methods: the paper uses the author's model for assessing the economic efficiency of quantum transformation of the information security function, based on approaches to analyzing the probability of risks associated with the creation of a quantum computer, as well as to assessing the investments required to implement innovative solutions in the field of quantum communications. The calculation was carried out on the example of PJSC RusHydro; data on the company were collected from open sources and annual reports. Results: the model for assessing the economic efficiency of quantum transformation of the information security function was tested. The Mosca’s Theorem was improved in the field of forecasting the timing of quantum transformation, taking into account the factor of economic efficiency of investment projects. Recommendations for implementing quantum key distribution equipment and post-quantum algorithms in the long term were developed. Conclusions and Relevance: the proposed original model allows assessing the economic efficiency of implementing quantum communications technologies, and the updated Mosca’s Theorem allows determining the economically justified timeframes for quantum transformation. The study showed that quantum communications may be of greatest interest to companies that own key critical information infrastructure facilities that provide high revenue figures. The higher the decentralization of infrastructure facilities is and the lower the risk of financial losses due to downtime is, the less economically efficient the projects for implementing quantum communications are. Thus, to protect multiple intelligent substations within the Smart Grid, it is recommended to use post-quantum mathematical algorithms that do not require significant capital investments. The results obtained may be of practical use for participants in the quantum market in Russia: the regulator, research centers, commercial developers of solutions, and potential clients.

DOI
10.18184/2079-4665.2025.16.3.488-504

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Purpose: evaluation of economic reasonability of quantum transformation of the information security function using the example of energy sector facilities. Methods: the paper uses the author's model for assessing the economic efficiency of quantum transformation of the information security function, based on approaches to analyzing the probability of risks associated with the creation of a quantum computer, as well as to assessing the investments required to implement innovative solutions in the field of quantum communications. The calculation was carried out on the example of PJSC RusHydro; data on the company were collected from open sources and annual reports. Results: the model for assessing the economic efficiency of quantum transformation of the information security function was tested. The Mosca’s Theorem was improved in the field of forecasting the timing of quantum transformation, taking into account the factor of economic efficiency of investment projects. Recommendations for implementing quantum key distribution equipment and post-quantum algorithms in the long term were developed. Conclusions and Relevance: the proposed original model allows assessing the economic efficiency of implementing quantum communications technologies, and the updated Mosca’s Theorem allows determining the economically justified timeframes for quantum transformation. The study showed that quantum communications may be of greatest interest to companies that own key critical information infrastructure facilities that provide high revenue figures. The higher the decentralization of infrastructure facilities is and the lower the risk of financial losses due to downtime is, the less economically efficient the projects for implementing quantum communications are. Thus, to protect multiple intelligent substations within the Smart Grid, it is recommended to use post-quantum mathematical algorithms that do not require significant capital investments. The results obtained may be of practical use for participants in the quantum market in Russia: the regulator, research centers, commercial developers of solutions, and potential clients.
The leading countries across the world have entered the race to develop quantum technologies that will enable them to ensure their continued economic prosperity. Among these technologies, a special place is occupied by quantum communication, which is designed to ensure information security in an era where a quantum computer is capable of compromising a number of cryptography algorithms. In this article, this new digital technology includes quantum key distribution and encryption methods that are cryptographically resistant to a quantum computer. The study does not consider the regulation of the quantum communication sub-technology, the so-called “quantum internet,” due to the technical limitations of the existing equipment. The authors note that their predictions about the cryptographic strength of encryption algorithms are based solely on modern knowledge about the capabilities of quantum computing and do not take into account its hidden potential, for example, in terms of cryptanalysis information systems based on a machine learning model generated by a quantum computer. Currently, the only data protection system that is not subject to quantum threats is the technology of quantum key distribution. In today’s information and digital age, information security systems are an important element of critical infrastructure. Given the importance of these technologies, different states use different methods to regulate this field. This article puts forward and substantiates the hypothesis that the implementation of a combination of regulatory legal acts could have a greater positive impact on the development of quantum communication and ensure an acceptable level of information security in the post-quantum era. The analysis showed that a significant number of states and interstate associations are conducting research in this area, relying only on investment growth. This strategy has prevented any country from achieving the competencies of the People’s Republic of China. The authors also analyzed the methods of legal support used by China, Russia, and other countries in the field of quantum communication, which made it possible to identify a model of legal regulation of quantum communication that stimulates this technology’s development.
The article examines the impact of quantum technologies on innovation processes in the global economy. It analyzes the critical aspects of integrating quantum technologies in various sectors of the economy, particularly in the financial, health care, production, and IT spheres. Theoretical models and empirical data confirming how quantum technologies can accelerate innovation processes, increase research efficiency, and create new economic opportunities are considered. The article also provides practical recommendations for strategic planning and management of innovation processes in the conditions of the quantum revolution. Special attention is paid to the importance of an interdisciplinary approach and cooperation between business and the state. The author noted that the modern economy is on the threshold of a new era, where quantum technologies play a decisive role, which represents a new class of tools capable of radically changing traditional approaches to data processing, security, and computing. Quantum computers, quantum cryptography and quantum communication open opportunities for the economy that can accelerate the development of new materials, optimize logistics chains and increase the level of data security. At the same time, the article highlights the need to develop global standards in the field of quantum technologies. The results of the research will contribute to a better understanding of the potential of quantum technologies to stimulate innovation and increase the competitiveness of the economy. Keywords: quantum technologies, global economy, innovation processes, quantum cryptography, quantum computing, quantum modeling, quantum communication, economic models, quantum algorithms, cyber security, logistics optimization, risk management, economic growth, financial markets, health care, production, quantum networks, development strategies, digital economy, technological revolution.
This article examines the legal regulation of quantum communications in the financial sector, which is viewed as a priority area for ensuring information security and the resilience of the national economy. It is noted that the rapid development of quantum computing is fundamentally altering the balance in the field of cybersecurity: in the foreseeable future, traditional cryptographic mechanisms may lose their robustness, creating risks for the functioning of the national payment system, the stability of credit and financial institutions, and public trust in financial transactions. In these circumstances, quantum key distribution (QKD) and post-quantum algorithms become key instruments capable of ensuring a fundamentally new level of information protection and of shaping a sustainable architecture of digital security. The methodological basis of the study consists of comparative legal analysis and a comparison of foreign regulatory practices (the European Union, Singapore, China and Brazil) with Russian strategic instruments and pilot initiatives. International experience shows that the implementation of quantum communications is pursued through inclusion in strategic programmes, development of standards, creation of “regulatory sandboxes,” and support for pilot projects. Particular attention is given to the need to harmonise national approaches and to develop international agreements capable of eliminating regulatory fragmentation. A domestic model of legal regulation is taking shape in Russia: concepts and roadmaps through 2030 have been approved; preliminary national standards (PNST 829–832) have been adopted; the GOST R 57580.x series is being developed; quantum cryptography tools are being certified; and pilot projects are being implemented with the participation of major financial organisations. At the same time, the study identifies barriers hindering further development—fragmentation of the regulatory framework, complex procurement procedures, and insufficient institutional coordination among the state, business and the academic community. Priority areas are proposed, including institutionalisation of experimental legal regimes, establishment of permanent expert platforms, expansion of pilot-project practice, harmonisation of national rules with international initiatives, and development of a national quantum communications infrastructure. The article concludes that consolidation of legal, organisational and technical measures will strengthen technological sovereignty and ensure long-term protection of the financial system against quantum threats.
The accelerating digitalization and decentralization of modern power systems expose critical communication infrastructures to escalating cyber risks, particularly under emerging quantum computing threats. This paper presents an integrated techno-economic framework to evaluate the feasibility of Quantum Key Distribution (QKD) for secure power-system communications. A stochastic system model is developed to jointly capture time-varying key demand, QKD supply under optical-loss constraints, station-side buffering, and post-quantum cryptography (PQC) fallback mechanisms. Analytical conditions are derived for service-level assurance, including buffer stability, outage probability, and availability bounds. Building on this, two quantitative metrics, including the Levelized Cost of Security (LCoSec) and Cost of Incremental Security (CIS), are formulated to unify capital, operational, and risk-related expenditures within a discounted net-present-value framework. Using IEEE 118-bus, 123-node, and 39-bus test systems, we conduct discrete-event simulations comparing PQC-only, QKD-only, and Hybrid architectures across multiple topologies and service profiles. Results show that Hybrid architectures dominated by QKD significantly reduce key-outage probability and SLA shortfalls, achieving near-unit availability for real-time and confidentiality-critical services. Economic analyses reveal clear breakeven zones where QKD-enhanced deployments become cost-effective, primarily in metropolitan and distribution-level networks under moderate optical loss and buffer sizing. The proposed framework provides a reproducible, risk-aware decision tool for guiding large-scale, economically justified QKD adoption in future resilient power-system infrastructures.
Abstract The use of quantum technologies in the modern world poses significant challenges to the security of critical information infrastructure, which underpins key sectors such as healthcare, energy, transportation, and communications. Cryptographic algorithms like RSA and ECC, long considered reliable, have lost their resilience in the face of quantum computing capabilities, making the search for modern solutions to ensure data protection a top priority. The main risks posed by quantum computers include the potential compromise of encryption algorithms, disruption of data integrity, and destabilization of critical system operations. The methodological foundation of this study is based on the analysis of 318 sources from international databases such as Scopus and Web of Science. From this body of literature, 24 publications most relevant to the topic were selected. A comparative method was employed to analyze classical and quantum threats. The aim of the study is to examine the impact of quantum attacks on the security of critical information infrastructure (CII) at the current level and propose pathways for transitioning to quantum-resilient solutions. The results emphasize the necessity of implementing innovative cryptographic approaches, such as lattice-based and code-based algorithms, as well as combined (hybrid) technologies. Successful protection of the infrastructure requires a systematic approach, including a comprehensive audit of existing systems, training of specialists, and the removal of technical and regulatory barriers. The developed step-by-step plan minimizes risks and establishes a foundation for the secure implementation of new standards.
The purpose of the article was to theoretically determine harmonised criteria for the applicability of quantum key distribution for the protection of critical infrastructure, taking into account the long-term risk of decryption by adversaries possessing quantum computational resources and traffic archiving capabilities. The methodology relied on a theoretical systems analysis of three Quantum Key Distribution subsystems – sources, detectors, and channels (fibre/free space) – complemented by simplified models of the link budget and bit error probability. A concise scenario analysis was conducted for banking networks, energy systems, and government communications, taking into account scalability, compatibility, and cost. The main results showed that laser intensity stability of 1-2% and higher detector efficiencies – 60-70% for Avalanche Photodiodes and 80-90% for Superconducting Nanowire Single-Photon Detectors – extended practical distances and reduced errors. Without trusted nodes in fibre, 150-200 km was achievable; for urban Free-Space Optics lines, 5-20 km was optimal, while longer distances required network segmentation or satellite segments. Architecturally, it was justified that: for banks – rings with trusted nodes and Free-Space Optics reserve; for energy systems – dual fibre channels “control centre-substation” with a local key cache; for government communications – segmented domains with interagency gateways and satellite redundancy. In all scenarios, a Quantum Key Distribution + Post-Quantum Cryptography hybrid with short key rotation and operational countermeasures against attacks on detectors and channels was appropriate, confirming practical suitability for urban and regional networks. The practical significance lay in providing engineering teams in banking, energy, and government communications with ready-made architectural profiles – from rings and dual fibre channels to segmented domains – with Key Management System/Hardware Security Module integration, definition of Service Level Objective/Service Level Agreement, and phased roadmaps. For regulators and operators, this formed a basis for updating requirements and audits, as well as for planning redundancy (Free-Space Optics/satellite) and Total Cost of Ownership categories