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Bits of Energy
Daniele Miorandi
daniele.miorandi@{create-net.org,u-hopper.com}
House rules
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My task
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● Lead scientist at CREATE-NET○ 120+ publications○ h-index 24○ 6+M€ competitive
R&D funding○ 4 patents pending
About myself
● EVP R&D @ U-Hopper○ Big data services for
retail & marketing ■ RetailerIN (http://www.
retailerin.com/)■ Tapoi (http://www.tapoi.
me/)○ Recently landed in SV
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Bits of what??
● Smart energy systems● Privacy and security issues● Business opportunities and showstoppers
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“Houston, we have a problem”
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Market??
$2B7
CAGR???
● Market analysis firms predict a CAGR in the range from 9.6% to 29.7%○ Depending on the assumption on evolution of
regulatory frameworks● Faster growth in China/APAC
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Ok, now let’s go back to the tech...
Smart grid?
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Energy + ICT = Smart Grid
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Smart grid● Supports two-way energy flow● Ubiquitous sensing + real-time control & actuation
○ Optimized energy flow○ Demand-response mechanisms (adapt demand to
generation)● Value-added services
○ Personalised tariffs, energy consumption visualization, remote control of appliances etc.
● Data, data, data (100s PB/yr)11
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Why smart grids?
● From traditional power grids to smart energy systems○ Policy○ Technology○ Business
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Policy driver
● Global warming & Kyoto protocol○ Push to energy efficiency & low-carbon
■ “Waste less energy in the grid”■ “Use more from wind & sun”
○ (Big!) push to renewable energy systems■ Small-scale, distributed
● vs. old large-scale, centralized■ Intermittent, unpredictable
● vs. old fully controlled
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Tech driver
● Sensors and actuators○ Something better than electromechanical switches??○ E.g., PMU
● Data processing○ Cloud, big data etc.etc.
● High-speed nets○ Open networks??
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(break)
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Business driver
● Energy markets getting liberalized & open○ vs. old state-owned monopoly
■ (modulo transmission - natural monopoly)○ business pressure to achieve higher efficiency and
to offer new services/tariffs
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So what does that mean?
● From a centralized, closed and strictly controlled system..
● ..To a distributed, open eco-system● Heavy role of ICT as enabling technology● Potential usage of ‘open’ networks (aka the
Internet + cloud)
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Caveat● Some folks believe ‘smart grid is like the
Internet for energy’○ That’s damn wrong
● Energy storage is technically challenging and veeery expensive○ So what flows in must flow out○ Very different from storing bits! (~free)
● Energy transmission is costly as well!○ Consume where produce, Produce where consume
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Security and privacy: why?● A critical infrastructure moving from a closed system to
an open one○ Prone to attacks ○ Cybersecurity issues
● From an energy-centric monopoly to a data-driven business landscape○ Data security issues
● Detailed energy consumption issues available through smart meters○ Privacy aspects (personal data!) 20
#1: Cybersecurity
● Connect a critical infrastructure to the Internet = opening Pandora’s box
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Cybersec (cont’d)● From 2011 to 2014, the U.S. Department of
Energy received 362 reports from electric utilities of physical or cyber attacks that interrupted power services○ Most frequent one? Shooting substation
transformers (no jokes)● 30% growth y/y● What about the unknown ones?
○ Orders of magnitude more 22
Cybersec (cont’d)
● Key weak point: SCADA○ Stuxnet++
● What to do?○ Airgap does not help!
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Cybersec (cont’d)
● What to do○ Intrusion detection systems○ Strong authentication/authorization○ DDoS remedies + anomaly detection○ Source address validation (?!)
● More in general: design for robustness and resilience at the system level○ There is no 100% secure asset
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Cybersec (cont’d)
● Is crypto the solution?● Need new design paradigms at the system
level○ look at complex systems stuff
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#2: Data security
● Energy data has business value○ Integrity○ Authenticity○ Confidentiality○ (tamper-proof devices, ok)
● Pretty standard stuff from an ICT perspective○ Yet new for energy folks!
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Data security (cont’d)
● Energy companies reluctant to move data to the cloud (!)○ That will end rather soon
● Any solution for creating trusted cloud environments can have a good impact○ Honest-but-curious provider
■ Data obfuscation, homomorphic encryption etc.etc.
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#3: Privacy
● Detailed consumption data is personal information○ At least in EU
● Detailed?○ 15’ granularity (standard for smart meter)
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Privacy (cont’d)
● Why personal?○ You see a spike at 3am every night in my house.
What does that mean?
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Privacy (cont’d)
● Yet, detailed consumption information has value○ Billing
■ dynamic ToU, real-time spot pricing○ Operations
■ Flow balance○ Value added services
■ Visualization, behavioural energy efficiency etc.etc.
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Privacy (cont’d)
● Privacy-by-design approach○ for collection (informed consent, minimality principle
etc.etc.), processing (k-anonymity, differential privacy etc.etc.), profiling (access management, auditing)
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Looks like..
● A rather large, fast-growing market● In need of security and privacy-preserving
tech● No rocket science required
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The evil side of smart grids
● Energy is a regulation-driven market● Companies do not invest if not strictly
required to do so○ Little competitiveness push to innovation
● Conservative mindset● Traditionally hunting field for big fishes (sap,
oracle, ibm etc.etc.)34
The good news
● Regulatory push is coming● US market already developing● Good exit opportunities
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