Smart grids modernize energy systems but introduce security risks as millions of connected meters and devices communicate with utilities. The paper explains that compromising top level cryptographic keys could expose the entire grid, making hardware security modules essential as the root of trust. HSMs secure device identities, provisioning, firmware signing, message integrity and large scale PKI operations. They enable segmentation, high availability, trusted firmware updates and strong key protection, ensuring confidentiality, authenticity and resilience across smart grid infrastructures.

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