4) The Smart Grid is intended be an end-to-end control system, where power to individual devices and sockets in your smart house can be remotely controlled from the other end of the network by you, the power companies or third parties. (ref 1)
The Smart Grid will look approximately like this (more sophisticated diagram at ref 2):
Home Area Network
(HAN: control system in your house connected to individual "smart" appliances and sockets which can be remotely switched on/off, through apps from power companies and independent app suppliers)
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Smart Meter (gas meter + electricity meter + control and communications module)
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Wide Area Network (WAN: communications to/from DCC)
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DataCommsCo (DCC: centrally managing your meter data)
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power companies, independent suppliers of apps and services
The idea of the "smart house" or HAN was described in the Guardian recently,(ref 3) extolling the virtues of remotely switching off the socket for your hair straighteners or turning down your spouse's heating while you're out (I shit you not, the Guardian called this "a boon".) Initially this would be controlled by the consumer via a website or mobile phone commands, but eventually it would also be connected to the Smart Meter,(ref 3) which would open control to the power company, suppliers of independent apps, and anyone who could gain access at any point along the Smart Grid.
This has serious problems on many levels.
Let's assume the system remains secure.
a) The aim of this system is not to give the consumer choice and control ? because you already have choice and control. It's to give the power company control to carry out "load management" within your home through "appliance switching events". To translate, during peak times they will switch off appliances like your fridge, freezer, water heater, and washing machine.(ref 4)(ref 5)(ref 6)(ref 7)
This switch-off will be done by software within a smart appliance or socket, or by an app talking to the HAN. The power company will encourage you to install such apps by offering a Time-of-Use tariff, where the price you pay for electricity will vary at half-hourly intervals (like Economy 7 on acid).(ref 4)(ref 8) When the price rises above a certain amount, the HAN will switch off the appliance.
Initially these TOU tariffs + switch-off apps may be promoted as being a discount on normal electricity prices. However it?s not hard to envisage that once the system has been fully rolled-out, the boot will change foot: TOU will become the norm and anyone not having switch-off apps may be charged a premium for the sort of uninterrupted supply we currently take for granted. Much as the train companies charge eye-watering prices for tickets outside regulated fares.(ref 9)
So money has been decided on as the mechanism for rationing, once power supply can't meet demand, over other methods of rationing such as rotating power-restrictions round a series of substations. Maybe this is what we as a nation want: it's certainly a thing we should discuss democratically.
b) There is plenty of talk of switching appliances off ? but I've seen very little about switching them back on again. What will happen to the food in the freezer if the price peak lasts for hours? The washing trapped in the washing machine? How energy-efficient is it to be reheating washing water? Or tumbling clothes that missed the good drying weather?
Think it can't get worse?
c) You know how, when there's an upgrade or patch from Microsoft or Apple, your machine or your apps fall over? Now that can be your home's power supply. The power company will remotely upgrade and patch your programmable Smart Meter, and you'll come home to find the app from your independent supplier has crashed and switched the freezer off.(ref 10) Or switched the hair straighteners on.
But in fact the system won?t remain secure.
a) There are multiple points of entry to the Smart Grid, eg directly via the Smart Meter, via apps, via the web interface, via the wireless HAN.
b) Most of the technology being used for Smart Grids has well-known vulnerabilities.(ref 11) Eg the US is installing about 52 million Smart Meters of a type "riddled with security bugs that could bring down the power grid".(ref 12) It is possible to build much more secure systems, but that costs money. And even supposedly secure systems are not safe against a dedicated attack, as weapons manufacturer Lockheed Martin discovered in March 2011.(ref 13)
c) The Smart Grid will be highly connected and communication is two-way, so once malware gets in it can rapidly infect thousands of individual Smart Meters as well as attack the power companies' control systems.(ref 11) Once in, malware can do more that just crash a computer system: Stuxnet halted the Iranian nuclear programme by taking control of centrifuges and running them so they broke.(ref 14)
Ross Anderson's analysis of the situation is thus:
"Electricity and gas supplies might be disrupted on a massive scale by failures of smart meters, whether as a result of cyber-attack or simply from software errors. The introduction of hundreds of millions of these meters in North America and Europe over the next ten years, each containing a remotely commanded off switch, remote software upgrade and complex functionality, creates a shocking vulnerability. An attacker who takes over the control facility or who takes over the meters directly could create widespread blackouts; a software bug could do the same."(ref 15)
Summary
A Smart Grid is a control system allowing appliances in your house to be remotely controlled by you, the power companies and anyone who can gain access to the Smart Grid. The power companies plan to use this to switch off your appliances at peak times, because this is cheaper and on, the face of it, more energy efficient that providing adequate peak supply.
Smart Grids are a massive new vulnerability in critical infrastructure. They are profoundly vulnerable to hacking at all levels, from script kiddies to hostile states. They are also vulnerable to software error and failure of multiple apps to interoperate smoothly. The consequences of a software failure or attack or could be anything from your house burning down to sudden, catastrophic failure of critical national infrastructure.
References
(ref 1) "The Fourth Carbon Budget - Reducing emissions through the 2020s", UK Committee on Climate Change, Chap 6 p273 Box.6.11
(ref 2) "New bill would accelerate UK smart meter rollout", Smart Grid Watch published by eMeter (US company selling Smart Grid technology)
(ref 3) "Smart homes: take remote control", The Guardian
(ref 4) "Smarter Grids: The Opportunity", DECC, pp2, 17
(ref 5) "Guest post: Roger Hunt on Smart Homes", British Gas Customer Newsroom
(ref 6) "Gov confirms plans for Sky box in charge of your house", The Register
(ref 7) Smart Metering Implementation Programme: Statement of Design Requirements, DECC & Ofgem, Table 1
(ref 8) Smart Metering Implementation Programme: A call for evidence on data access and privacy, DECC & Ofgem, §30
(ref 9) "Train fares set to fall in 2010", BBC News
(ref 10) "Who Controls the Off Switch??, Ross Anderson & Shailendra Fuloria, Cambridge University Computer Laboratory, chap. IV §D
(ref 11) Report: World Cyber Security Technology Research Summit, Belfast 2011, Centre for Secure Information Technologies, Queen's University Belfast, §2.1.3
(ref 12) "Buggy 'smart meters' open door to power-grid botnet", The Register
(ref 13) "RSA to Replace SecurID Tokens After Lockheed Cyber Attack", PCMag
(ref 14) "Stuxnet: Cyber attack on Iran 'was carried out by Western powers and Israel'", The Telegraph
(ref 15) "Who Controls the Off Switch??, Ross Anderson & Shailendra Fuloria, Cambridge University Computer Laboratory, Chap. V