© 2010 by Elster. All Rights Reserved. Smart Grid and Data Security Ali Mouslmani Kim Arlund Nørgaard Regional Director Vice President, Elster Group
© 2010 by Elster. All Rights Reserved.
Smart Grid and Data Security
Ali Mouslmani Kim Arlund NørgaardRegional Director Vice President, Elster Group
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
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
4© 2010 by Elster. All Rights Reserved.
The World’s Leading Utilities Choose Elster North America
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The World’s Leading Utilities Choose Elster Europe
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The World’s Leading Utilities Choose Elster Rest of the World
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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).
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
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Smart Grid and Drivers
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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
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
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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
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
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
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Consumer Protection Perspective
(Privacy)
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Why is Data Privacy important for Smart Metering?
Source: Elias Leake Quinn, Smart Metering & Privacy: Existing Law and Competing Policies, Spring 2009
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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
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Possible Solutions
• Explicit customer consent
• Aggregating data
• Pseudo/ Anonymizing data
• Further legal guidelines
General: Data needed for invoice purposes can be gathered
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Security
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Having a look at news on Smart Meter/Grid Security...
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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.
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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
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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
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Smart Grid Data Security
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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
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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
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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
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Thank You