POWER May 2012 - 81

SMART GRID
The adoption of an architectural filter for
smart grid systems evaluation similarly applies
to smart grid software (both information
and operational technology) systems and
is especially important for smaller utilities.
4. Cyber Security Failure Risks Will
Near Inevitability
Smart grid cyber security at the end of 2012
is likely to look much as it did at the beginning
of 2012. This " non-development " owes
its existence to the continued non-existence
of enforceable cyber security standards. The
1. Layers of smart grid architecture.
In a fully integrated smart grid, individual
technologies are able to interact with each
other seamlessly. Source: Pike Research
situation is dire enough that a recent Pike Research
blog post on cyber security standards
used Waiting for Godot as its graphic.
The details of the conundrum are too many
for full consideration here, but one thing
is clear: While some deride cyber security
standards as irrelevant, that is far from reality.
Utilities hesitate to invest in cyber security
that is not required for compliance with
something. That may sound cynical, but it is
pragmatic. Utilities do not know what cyber
security to buy, as they have no idea what
some as-yet-unwritten regulation will require
of them. An industry plagued by stranded assets
will be loath to voluntarily sign up for
more.
The lack of standards hinders vendors,
as well. In order to decide which technologies
to develop and which to leave untapped,
vendors must predict what regulations will
be enacted around the globe. That is nearly
impossible, but vendors cannot be seen as inactive
in their market, so they have to build
something. Therefore, 2012 will most likely
see new cyber security products targeted at
smart grids. Unfortunately, not all vendors
see the same market. Cyber security products
from different vendors thus often do not
integrate well. This adds further obstacles
to smart grid interoperability-a feat that is
challenging in the best of cases.
A recent Pike Research report forecasts that
Note: AMI = advanced metering infrastructure, DA = distribution
automation, HAN = home area network, LAN =
local area network, NAN = neighborhood area network,
WAN = wide area network.
cumulative investment in smart grid cyber security
through the end of 2018 will total nearly
$14 billion. But without any standards, all that
investment may not yield any meaningful improvements
in smart grid protection. The continued
lack of standards could also dictate a
continued lack of protection.
2. Competing communication options. Distribution automation communications
options include both private and public systems and come in a range of bandwidths and prices.
Source: Pike Research
5. Consumer Backlash Will Not Go
Away
Health concerns, fears of privacy invasion
and hacking potential, and general conspiracy
theories continue to slow down smart
meter deployments. Despite strong evidence
to the contrary, vocal minorities will continue
to push against these deployments. No matter
how much utilities try to blunt the protests,
they can expect to have to deal with this issue
for the near term at least.
In California, to deal with the pushback
problem, PG&E asked for and was granted
permission by state regulators to let customers
opt out of having a smart meter installed;
instead, customers can keep their old analog
meters if they agree to pay a monthly fee. A
similar opt-out option is available in Maine.
In Michigan, Consumers Energy is taking a
proactive approach. While it has not yet deployed
smart meters, the utility has decided
to offer an opt-out program in advance of its
planned rollout.
Though opt-out offers look necessary, savvy
utility managers will acknowledge customer
fears and work to directly engage them
on this and other smart grid-related issues.
Pecan Street, for example, is a public-private
initiative in Texas that is looking at smart meters
and the smart grid from the consumers'
perspective.
6. DA and AMI Will Intersect
The past year has seen distribution automaton
(DA) projects and technologies emerge to the
forefront of smart grid applications. Compared
to the higher-profile smart meter and
advanced metering infrastructure (AMI) deployments,
DA investments often have clearer
paybacks, can be deployed gradually with a
tighter focus on problem areas, and (perhaps
most attractively) do not require any consumer
involvement (that is, behavior changes).
Consequently, AMI networking technology
suppliers seem to be thinking that it
should be easy to piggyback DA device communications
on the same network. This may
or may not be as easy as it seems, and there
are plenty of competing technologies for the
DA network (Figure 2).
DA applications are now becoming increasingly
complex, including recent efforts
at advanced, dynamic optimization of the
distribution grid. This is especially important
as distributed generation and plug-in electric
vehicles (EVs) edge toward widespread deployment.
(See POWER's March 2012 issue
for more on EV integration issues.)
Beyond the sharing of network infrastructure,
the more important intersection
between AMI and DA is occurring at the IT
and operational technology (OT) application
level. Smart meters, the endpoints of every
May 2012 | POWER
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POWER May 2012

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