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© 2010 by Elster. All Rights Reserved. Smart Grid and Data Security Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice President, Elster Group
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Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

Jan 17, 2020

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Page 1: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

© 2010 by Elster. All Rights Reserved.

Smart Grid and Data Security

Ali Mouslmani Kim Arlund NørgaardRegional Director Vice President, Elster Group

Page 2: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

2© 2010 by Elster. All Rights Reserved.

Global LeadershipGlobal leadership positions across all Smart Grid segments and end-markets (residential, C&I and T&D)

GAS

globalmarket share

#1

NORTH AMERICAN AMI

in cumulative shipments

(JOINT)

WATER

globalmarket share

(JOINT)

ELECTRICITY

globalmarket share

#2#3 #1

Page 3: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

3© 2010 by Elster. All Rights Reserved.

Proven, Trusted Smart Grid Solutions

GLOBAL REACH

2009 REVENUES: $1.7 B

170+ YEARS DELIVERING TRUSTED SOLUTIONS

200 MILLION METERS DEPLOYED IN PAST 10 YEARS

Operations in 38 countries, customers in

>100 countries

3.5 million deployed, operational Smart Grid endpoints

Page 4: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

4© 2010 by Elster. All Rights Reserved.

The World’s Leading Utilities Choose Elster North America

Page 5: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

5© 2010 by Elster. All Rights Reserved.

The World’s Leading Utilities Choose Elster Europe

Page 6: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

6© 2010 by Elster. All Rights Reserved.

The World’s Leading Utilities Choose Elster Rest of the World

Page 7: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

7© 2010 by Elster. All Rights Reserved.

Elster | Reliable and Flexible

• Successful implementation of projects ranging from small pilots up to >1,000,000 endpoint deployments across electricity, gas, water

• Deployments in remote/rural territories, dense urban environments, and in everything between

• Multi-utility applicability

• Typical meter read rates in excess of 98% at large scale

• Global promoter of interoperability and standardization

• Seamless upgrades at scale protect and future-proof investment

• Interoperability with technology from other vendors provides maximum flexibility—today and into the future

Elster’s technology works (as our current customers will tell you).

Page 8: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

8© 2010 by Elster. All Rights Reserved.

Comprehensive Solutions PortfolioSelected Elster Offerings

Home Area Network (HAN)Home Area Network (HAN)

Meters and Communications DevicesMeters and Communications Devices

Local Area Network (LAN)Local Area Network (LAN)

CollectionCollection

Wide Area Network (WAN)Wide Area Network (WAN)

Head-endHead-end

MDMMDM • EIServer

• EIServer, EA-MS, EvoNet Manager, [ALPHACENTER]

• IP, Wired & Wireless telephony, Fiber, Broad Band Power Line Carrier (BPL), GPRS, Satellite

• IP, EA RF Mesh, EvolutionTM, Power Line Carrier, Ethernet, RS 232/485, Wavenis

• Gas: Diaphragm, Ultrasonic, Rotary, etc.• Water: Single Jet, Multi Jet, Volumetric, Solid State• Electricity: Single and Polyphase Electronic Meters

Service disconnects / shut-off switches

• IP, EA RF Mesh, ZigBee, Wavenis, Blueline, EvolutionTM, MBus, Controllable Displays, Controllable Thermostats, Load Control Devices

Smar

t Grid

Val

ue C

hain

• EA Gatekeeper, GateWay, RTU, MUC (Multi Utility Communicator)

• Distribution automation, demand response,renewable integration

Applications

Page 9: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

9© 2010 by Elster. All Rights Reserved.

Smart Grid and Drivers

Page 10: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

10© 2010 by Elster. All Rights Reserved.

Task Force Smart Grids of theEuropean Commission

Expert Group 2: Regulatory

recommendations for data safety, data handling and

data protection

Expert Group 2: Regulatory

recommendations for data safety, data handling and

data protection

Expert Group 1: Regulatory

functionalities for Smart Grids and Meters

Expert Group 1: Regulatory

functionalities for Smart Grids and Meters

20 / 20 / 20 EU Target: 20% CO2 reduction, 20% renewable energy, 20% energy consumption reduction

20 / 20 / 20 EU Target: 20% CO2 reduction, 20% renewable energy, 20% energy consumption reduction

Expert Group 3: Roles and

responsibilities of actors involved in Smart Grids

deployment

Expert Group 3: Roles and

responsibilities of actors involved in Smart Grids

deployment

Page 11: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

11© 2010 by Elster. All Rights Reserved.

• 20% CO2 Reduction• 20% Renewable

• 20% Reduction of Energy consumption through Energy

Efficiency

20 / 20 / 20 EU Targets20 / 20 / 20 EU Targets

• Prepare the energy infrastructure for the future• Balance Energy generation, distribution and • consumption

Infrastructure Infrastructure

Smart Home• Energy generation in homes • Flexible Tariff based on electric devices• Network / Automation / Communication

eMobility• Real time billing everywhere• Flexible Tariffs

Smart Grid

Smart Metering is the key component

European Mandate Requirement

Page 12: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

12© 2010 by Elster. All Rights Reserved.

Utility of the FutureDrivers

• Government policies • Market liberalization & competition• Climate change & environmental sustainability

• CO2 emissions & policies • Energy independence & security

• Demand growth

• Fuel / wholesale costs• Renewables & alternatives

• Demand response• Consumer demands

• Cost, Choice, Comfort

• Social responsibility• Infrastructure

• Aging assets• Technical obsolescence

• Investment priorities (Gen, Tx, Dist)

ClimateChangeClimateChange

Renewables&

Alternatives

Renewables&

Alternatives

DemandResponseDemand

Response

DistributedEnergy

Resources

DistributedEnergy

Resources

EnergyEfficiencyEnergy

Efficiency

GridModernization

GridModernization

Page 13: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

13© 2010 by Elster. All Rights Reserved.

Utility of the Future Linking it all Together: “The Smart Grid”

Renewables&

Alternatives

Renewables&

Alternatives

DistributedEnergy

Resources

DistributedEnergy

Resources

GridModernization

GridModernization

DemandResponseDemand

Response

EnergyEfficiencyEnergy

Efficiency

CarbonPoliciesCarbonPolicies

Smart Grid is an evolution, Smart Metering is today’s building blockSmart Grid is an evolution, Smart Metering is today’s building block

Smart MeteringSmart

Metering

Page 14: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

14© 2010 by Elster. All Rights Reserved.

GasGas Electricity Electricity WaterWater

Demand response

Resource efficiency

Capacity optimization

Loss / leakage control

Grid management

Reduction of operating costs

Not relevantHighly relevant

Drivers

Grid

mgm

t.G

rid m

gmt.

Ope

ratin

g ef

ficie

ncy

Ope

ratin

g ef

ficie

ncy

Smart meter adoption more pronounced among electric ity utilities; gas and water are catching up

Increase asset performance and return

Con

sum

-pt

ion

mgm

t.C

onsu

m-

ptio

n m

gmt.

Smart Metering / Smart Grid Industry LandscapeKey drivers for Smart Meter Implementation

Source: Additional analysis by Business Unit/ EIS

Page 15: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

15© 2010 by Elster. All Rights Reserved.

Consumer Protection Perspective

(Privacy)

Page 16: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

16© 2010 by Elster. All Rights Reserved.

Why is Data Privacy important for Smart Metering?

Source: Elias Leake Quinn, Smart Metering & Privacy: Existing Law and Competing Policies, Spring 2009

Page 17: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

17© 2010 by Elster. All Rights Reserved.

SmartPrivacy in terms of the Smart Grid visionIntelligent• collect minimum amount of personal

information without diminishing quality • communicate regarding collection, use and

disclosure of personal information

Efficient • meet consumer demand without

compromising the privacy and security• dispose personal information when no longer

needed

Accommodating• consumer preferences regarding use,

retention, and disclosure of information • make options accessible to the individual

Motivating• consumers tailor personal information options• obtain consent before disclosing any

personal information

Opportunistic• create new opportunities and markets by

privacy-enhancing technologies

Quality-focused• deliver information that is free of inaccuracies• allow individuals to access to personal

information and make corrections

Resilient• resistant to data leakage and breaches of

personal information• reinforced with privacy and security protocols,

such as privacy by default and breach notification protocol

“Green”• ensure consumer trust in the Smart Grid,

fostering greater participation by individuals leading to environmental improvement

Page 18: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

18© 2010 by Elster. All Rights Reserved.

Possible Solutions

• Explicit customer consent

• Aggregating data

• Pseudo/ Anonymizing data

• Further legal guidelines

General: Data needed for invoice purposes can be gathered

Page 19: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

19© 2010 by Elster. All Rights Reserved.

Security

Page 20: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

20© 2010 by Elster. All Rights Reserved.

Having a look at news on Smart Meter/Grid Security...

Page 21: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

21© 2010 by Elster. All Rights Reserved.

What is Data Security?

• Protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction in order to provide

• (A) integrity, which means guarding against improper information modification or destruction, and includes ensuring information non-repudiation and authenticity;

• (B) confidentiality, which means preserving authorized restrictions on access and disclosure, including means for protecting personal privacy and proprietary information; and

• (C) availability, which means ensuring timely and reliable access to and use of information.

Page 22: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

22© 2010 by Elster. All Rights Reserved.

Motivations for an attacker

• Financial gain

• Theft of service

• Mischief

• Manipulating neighbor’s meter, billing, etc

• Chaos

• wide spread attacks (AMI Worms or Viruses)

• “coordinated” power outages

• Fame and Recognition

Page 23: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

23© 2010 by Elster. All Rights Reserved.

Why is Data Security important for Smart Metering?

• With the right incentives systems are hacked:

• DVD copy protection was reverse engineered

• Game consoles can be hacked with “add-on” chips or firmware exploits

• PayTV got “free” (some still is)

• Hacks are distributed quickly within the communities (It does not really matter how complicated it is first place, things are optimized over time)

• Meters are essential for billing and will create the “right” attention

Page 24: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

24© 2010 by Elster. All Rights Reserved.

Smart Grid Data Security

Page 25: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

25© 2010 by Elster. All Rights Reserved.

Smart Grid Data Security – the Standards

CEN/TC 294CEN/TC 294 IEC/CLC/TC 13IEC/CLC/TC 13 ETSIETSI

ISOISO IEC/TC 66IEC/TC 66IEC/CLC/TC 13IEC/CLC/TC 13IEC/TC 57IEC/TC 57

IEC/TC 57IEC/TC 57

IEC/CLC/TC 13IEC/CLC/TC 13

CLC/TC 205CLC/TC 205

CEN/TC 237CEN/TC 237

Page 26: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

26© 2010 by Elster. All Rights Reserved.

Comparison of Crypto-Systems in Smart Metering

As per now:• DLMS relies completely on symmetric encryption• ZigBee SEP offers the use of symmetric and asymmetric encryption

Symmetric Encryption

�Easy to integrate

� Keys to be pre-shared

� Scales rather poorly

�Fast computation

Asymmetric Encryption

� Requires special infrastructure

�No shared secret needed

�Excellent scalability

� Comparatively complex

Solution

Initiate encryption with asymmetric cipher, generate random symmetric and continue with symmetric cipher

Page 27: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

27© 2010 by Elster. All Rights Reserved.

Summary Privacy and Security

• Privacy cannot be neglected to make Smart Metering a success

• Customer trust in Smart Metering and Smart Grid needs to be established

• Data security needs to be taken forward in Smart Metering

• Smart Metering/Grid standards are developed further, new standards will emerge.

• Security needs to be holistic and end-to-end to be successful

• Necessary technologies and mechanisms are available today, but they have to be

included into Smart Metering

• Target for security measures: effort of breaking is higher then gain from breaking it

• SG-EG1 and SG-EG2 have drafted detailed recommendation and developed

mandate to ESO’s

• Comments to be returned by 10.12.2010

• Final recommendation and mandate to be finalized by 17.12.2010.

• The recommendation goes in the direction of using asymmetric public key, which is

in line with the recommendation from NIST in US

Page 28: Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice ... · • SG-EG1 and SG-EG2 have drafted detailed recommendation and developed mandate to ESO’s • Comments to be returned

28© 2010 by Elster. All Rights Reserved.

Thank You