Holistic view on security as foundation for trust and innovation in new energy markets
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1 Smart Energy Demand Coalition Holistic view on security as foundation for trust and innovation in new energy markets CEER workshop on Meter Data Management Brussels, 19 April 2012 Thomas Weisshaupt
2 UPLOAD Challenge: create trust for enabling innovation Information Exchange Grid Domain DISTRIBUTED GENERATION Market Domains E-MOBILITY STORAGE TRANSMISSION DISTRIBUTION FAIR RETAIL TRUSTED REVENUE BUSINESS and LIABILITY ENABLING SHARING DEMAND RESPONSE SMART HOME BUILDING AUTOMATION NOKNOY* Communication / WAN TRUSTED SECURE DATA DATA and SECURITY ACCESS DEVICES &(e.g. PRIVACY MANAGEMENT Smart Meters) Remote Access Technical Data Remote Access DOWNLOAD User GeneratedContent POD Contract (Energy) Service Contracts CUSTOMER TRUSTED ENGAGEMENT ENGAGEMENT * not known yet
3 Looking at Data Exposure, Trust and Players Energy service providers should become trusted actors Energy Service Providers
4 What if data of demand-response interventions are authenticated the same level as credit card transactions are?...neighbours can run a virtual powerplant and share the revenue based on a clear and consistent identification of their assets and their generation data? smart meters have built-in security to prevent fraud and attacks, and to protect privacy while enabling new actors commercial participation in energy markets? at access control to data warehouse, strong authentication of data is given?...common energy storage devices can be used by a group of people and all incoming and released data about energy flow is subject to a trusted transaction?...mutitude of services could be provisioned securely to manage energy generation and/or devices?...a new service market evolves out of a trusted way of generating, managing and using meter data? 4
5 Thank you
6 Why security and privacy is crucial for a prosperous market? Scalability Interoperability Trusted Ecosystem Market Design Security of Supply Consumer engagement Business Enabling Grid Resilience Privacy Protection Trusted transaction
7 Smart Grids Development as a Sociotechnical Transformation Source: F.W.Geels, 2001, Idea for Implementation: Pekka Malinen, Aalto University
8 Energy utility Smart Grid Strategies Active player Centralised profit model + adding distributed resources Seeking new aggregation business Combining Energy and ICT technology for new services Cooperation with manufacturers and ICT companies PASSIVE ACTIVE Passive enabler Centralised profit model Distributed resources: - according to law New service providers between enabler and customers Territory expander New business from services New partnerships, especially service providers (Estates, emobility Services) Can be energy utility as well benefit is customer connections
9 Addressing Smart Grid Privacy challenges European Expert Groups advising the European Commission advise a Privacy by Design approach System design should ensure that Personal Data should not be exposed more than required Personal Data are mostly frequent consumption readings generated by Smart Meters, putting home privacy at risk Actors involved in Smart Grids only need specific information: Energy retailers needs information required for billing Distribution Network Operator need information related to line quality Third party may provide enhanced services such as reward schemes based on energy Time of use, or Consumption recommendations based on analysis of consumption profiles A standardized local processing environment in the Smart Meter or metering Gateway answers the problem Each grid actor remotely loads and manages its own applet, sending only required information over a secure channel Note that requirements are emerging for dedicated Hardware Security Elements in Smart Meters or Gateways (e.g. German BSI) Confidential
10 Example of decentralized approach Extended API could be developed to facilitate exploitation of locally stored metering data (consumption readings, tariffs information, load connect/disconnect events ) by service providers, enabling them to perform their duty in a privacy friendly manner Confidential
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