By enabling more efficient transmission and distribution of electricity, smart grids are rapidly gaining popularity around the world.
However, a new report by GlobalData says concerns are growing that the two-way flow of information the technology involves threatens privacy and could potentially compromise personal data.
The latest report states that while governments worldwide prepare to spend billions on securing smart grid infrastructure from external threats, large portions of the global community are fighting the potential harvest and dissemination of personal information by utility companies and other organizations.
Data collected through various smart grid technologies such as smart meters and smart appliances helps utilities to understand their consumers’ electricity consumption patterns. Based on these patterns, companies can plan their generation, provide more effective services, and also reduce peak-hour demand or load by forming suitable demand-response programs.
Worries for data privacy arise when the data collected from smart grid technologies is used to analyze the personal habits, lifestyle and behavior of consumers, beyond providing them with efficient electricity services.
Canada is one of the few smart grid markets to recognize the significance of consumer data privacy to its citizens, creating a set of guidelines in the 1990s known as Privacy by Design in the 1990s. This has prompted major utilities in Canada to incorporate security features into their smart grid systems.
GlobalData expects the smart grid cyber security market to exhibit huge growth before the end of the decade, climbing from a global value of $7.8 billion in 2011 to $79 billion in 2020. Smart Grids: A data privacy protection nightmare?