Hindawi Publishing Corporation

International Journal of Distributed Sensor Networks

Volume 2014, Article ID 974682, 11 pages
http://dx.doi.org/10.1155/2014/974682

Review Article
Challenges in the Smart Grid Applications: An Overview

Ataul Bari,1 Jin Jiang,1 Walid Saad,2 and Arunita Jaekel3

1
Electrical and Computer Engineering, University of Western Ontario, London, ONT, Canada N6A 5B9
2
Electrical and Computer Engineering Department, University of Miami, Coral Gables, FL 33146, USA
3
Computer Science, University of Windsor, Windsor, ONT, Canada N9B 3P4

Correspondence should be addressed to Arunita Jaekel; [email protected]

Received 13 November 2013; Accepted 30 November 2013; Published 6 February 2014

Academic Editor: Shuai Li

Copyright © 2014 Ataul Bari et al. his is an open access article distributed under the Creative Commons Attribution License,
which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

he smart grid is expected to revolutionize existing electrical grid by allowing two-way communications to improve eiciency,
reliability, economics, and sustainability of the generation, transmission, and distribution of electrical power. However, issues
associated with communication and management must be addressed before full beneits of the smart grid can be achieved.
Furthermore, how to maximize the use of network resources and available power, how to ensure reliability and security, and how
to provide self-healing capability need to be considered in the design of smart grids. In this paper, some features of the smart grid
have been discussed such as communications, demand response, and security. Microgrids and issues with integration of distributed
energy sources are also considered.

1. Introduction another degree of lexibility while also increas the complexity

to the current power system.
he traditional electrical power grid is unidirectional in
he deinition and description of the smart grid are not
nature, where the electricity lows from power generation
necessarily unique, as its vision to the stakeholders and the
facilities to end users. his system has served well for the
technological complexities can be diferent [4]. For example,
last hundred years. Recently, however, it has been subjected
the Ontario Smart Grid Forum has deined the smart grid as
to government deregulation and has sufered from several
follows.
technical, economic, and environmental issues. Modern
society demands this system to be more reliable, scalable, “A smart grid is a modern electric system. It uses com-
and manageable while also being cost efective, secure, and munications, sensors, automation and computers to improve
interoperable [1]. he next-generation electric power system, the lexibility, security, reliability, eiciency, and safety of the
known as the “smart grid” [2], is a promising solution to electricity system. It ofers consumers increased choice by
the long-term industry evolution. he smart grid is expected facilitating opportunities to control their electricity use and
to revolutionize electricity generation, transmission, and respond to electricity price changes by adjusting their con-
distribution by allowing two-way lows for both electrical sumption. A smart grid includes diverse and dispersed energy
power and information [3]. Moreover, it can complement the resources and accommodates electric vehicle charging. It
current electric grid system by including renewable energy facilitates connection and integrated operation. In short,
resources, such as wind, solar, and biomass, which is environ- it brings all elements of the electricity system production,
mentally cleaner as compared to the fossil fuels used in many delivery and consumption closer together to improve overall
bulk electric power generation facilities. Furthermore, each of system operation for the beneit of consumers and the
these new power generating systems can be relatively small environment” [5].
and can be distributed around the load centers to increase he U.S. Department of Energy (DOE) has suggested the
the reliability and reduce the transmission loss, which adds deinition of smart grid as follows.
2 International Journal of Distributed Sensor Networks

Power transmission

Wind
turbines
ISP

Internet
Data concentrator
ISP
PV

Control center
Residential area
(installed with
Power generation smart meters)
sites Service provider

Figure 1: An example of communication architecture in smart grid.

“An automated, widely distributed energy delivery net- and cyber security and resilience against attack or natural
work, the Smart Grid will be characterized by a two-way disasters; (3) ease of repair, particularly remote repair; (4)
low of electricity and information and will be capable increased information available to consumers regarding their
of monitoring everything from power plants to customer energy use; (5) increased energy eiciency along with the
preferences to individual appliances. It incorporates into the environmental beneits gained by such eiciency; (6) the
grid the beneits of distributed computing and communica- integration of a greater percentage of renewable energy
tions to deliver real-time information and enable the near- sources, which can be inherently unpredictable in nature;
instantaneous balance of supply and demand at the device (7) the integration of plug-in electric vehicles; and, (8) a
level” [6]. reduction in peak demand” [3].
Based on the common themes (which are “communica- An essential feature of a smart grid is the use of infor-
tion, integration, and automation that is sustainable, econom- mation and communications technology to gather and act
ic, and secure” [4]) of the deinitions and descriptions of the on information in an automated fashion to improve the
smart grid from diferent organizations, Canadian Electricity eiciency, reliability, economics, and sustainability of the
Association has deined smart grid as follows. production, transmission, and distribution of electricity [7].
“he smart grid is a suite of information based applica- In Section 2, some aspects of communications in smart grids
tions made possible by increased automation of the electricity will be reviewed.
grid, as well as the underlying automation itself; this suite One main component of the smart grid is the possi-
of technologies integrates the behaviour and actions of all bility of customer participation in the overall grid energy
connected supplies and loads through dispersed communica- management. his participation is done via the notion of
tion capabilities to deliver sustainable, economic and secure demand response or demand side management, in which
power supplies” [4]. (a) the power company provides incentives for customers to
In general, a smart grid is the combination of a traditional shit their load over time, and (b) customers are provided
distribution network and a two-way communication net- with partial autonomy to participate in buying/selling energy
work for sensing, monitoring, and dispersion of information from/to the grid. hus, in any smart grid mechanism, it is
on energy consumptions. An example of communication imperative to factor in demand response models and their
architecture in a smart grid is shown in Figure 1. A typical associated challenge. In Section 3, a discussion of demand
smart grid consists of numerous power generating entities response and the state-of-the-art contributions are provided.
and power consuming entities, all connected through a Recent technological advancement on distributed energy
network. he generators feed the energy into the grid and resources management helped creating a new grid paradigm,
consumers draw energy from the grid. he ad hoc, dynamic the smart microgrid distribution network [8]. A microgrid
and decentralized energy distribution are hallmarks of the is an electrical energy distribution network that includes a
smart grid. cluster of loads, distributed generators (e.g., renewable energy
It is expected that employing two-way communications sources such as solar panels and wind turbines), transmission,
in the smart grid will not only allow dynamic monitoring and energy storage systems. A microgrid can dynamically
of the use of electricity but also open up possibilities of respond to the changes in energy supply by self-adjusting
automated scheduling of electricity use [3]. he beneits of the demand and generation [9]. Controlled and reliable
the smart grid, as summarized by the US DOE, include integrations of distributed energy resources and microgrids
“(1) improved reliability; (2) increased physical, operational, are extremely important to ensure an uninterrupted power
International Journal of Distributed Sensor Networks 3

supply in the most eicient and economic coniguration. In energy management. For example, a customer can adjust
Section 4, several aspects of the microgrid and integration of the power usage based on the detailed energy consumption
distributed energy sources will be reviewed. information and the dynamic peak price, which can be
In addition to the most efective use of network resources displayed on some in-home display (IHD) units. Analysis of
and available power, the requirements of reliability and data also helps utility companies to better understand the
security are also important considerations in the design of pattern of consumer power consumption and to plan for
smart girds [2]. In Section 5, security aspects of the smart grid reducing some of their inancial burdens [11].
will be reviewed. In the context of home and oice applications of AMI,
the utility network would have four tiers: (i) the backbone
2. Communications in Smart Grid which is the path to utility data center (ii) the backhaul,
which is the aggregation point for neighborhood data (iii)
he automated and distributed energy system delivered by the access point, which is most likely the smart meter,
the smart grid largely relies on two-way low of electricity and (iv) the home area network (HAN) [3]. he HAN is
and two-way low of information [10]. Almost instantaneous envisioned to connect the smart meters, smart appliances,
balance of supply and demand at the device level in a electric vehicles, and electricity generators and storage units.
smart grid is possible due to the incorporation of distributed he idea here is to incorporate data communication for IHDs
computing and communications which enables exchange of and load controls for automated energy management during
information in real time [10]. In a report by the Electric peak hours. Normally, each device in the HAN will transfer
Power Research Institute (EPRI) to the National Institute of data indicating its instantaneous electricity use; therefore,
Standards and Technology (NIST), communications in the communications needs can be considered as modest [3].
smart grid are emphasized as follows. However, any communication technology selected for this
“Communications between each component in the smart application should be scalable to meet the requirement of
grid is extremely important to maximize the use of available large home and oice buildings. It is noted in [3] that,
electrical power in a reliable and cost efective way. herefore, other than demand response and distributed generation,
how to eiciently manage the new, intelligent power system the reliability requirements for in-home applications are not
and integrate it into the existing system has become one of extremely critical (e.g., ranged from 99 percent to 99.99%),
the main challenges for the smart grid infrastructure” [10]. and so is the latency requirement (e.g., ideally between 2 and
he smart grid, being a vast system, may utilize various 15 seconds). Reasonable timeliness is still required though for
communications and networking technologies with its appli- consumers awareness and for any upstream applications, such
cations, which include both wired (e.g, copper cable, iber as demand response that depends on this information [3].
optic cable, and power line carrier) and wireless communica- For communications, low-powered, short-distance tech-
tions (e.g., cellular, satellite, microwave, and WiMAX). Short nologies have been investigated for on-premises applications
range wireless communication technologies such as WiFi and that include wireless communications, such as WiFi (based
ZigBee can also be used in some smart grid applications, such on IEEE 802.11 standard) and ZigBee (based on IEEE 802.15.4
as in home area networks [10]. he US DOE has classiied standard), as well as powerline networking such as HomePlug
smart grid applications into six functional categories: (i) that uses existing electrical wiring in the home to carry data
advanced metering infrastructure; (ii) demand response; [3]. Although there is no general consensus yet on a standard,
(iii) wide-area situational awareness; (iv) distributed energy ZigBee, followed by HomePlug, appears to be promising
resources and storage; (v) electric transportation; and (vi) technology for these applications. ZigBee, being wireless,
distribution grid management [3]. Some of the communica- ofers several advantages [3] and expected to efectively
tions and networking technologies can be used with multiple communicate and control various smart appliances in home.
applications [3]. HAN may also open up the possibilities of remote home
One of the applications area in smart grid communication monitoring and control, such as a thermostat or an appliance,
is the so-called Advanced Metering Infrastructure (AMI). through smart phones [3].
Unlike the traditional way, where technicians are sent to each Once the HAN devices communicate data to the smart
consumer site monthly to record the data manually for the meter, this information should be carried to an aggregation
billing purpose, the smart meters in AMI provide real-time point, oten is a substation, a pole-mounted device, or a
monitoring capability of electric loads remotely. he informa- communication tower [3]. he bandwidth, reliability, and
tion on power usage can be collected periodically (e.g., every latency requirements for this application can be similar to
15 minutes) by a data concentrator at the intermediate layer that of in-home networking. Traditionally, power line carrier
using wired or wireless communications and be forwarded (PLC) technology has been used, which is usually low cost;
to a central location. he real-time data is eicient and however, it ofers a very low bandwidth and also requires
precise. his allows utility companies to analyze consumer hopping around transformers [3]. To address this issue, many
energy consumption data and to provide outage notiication current AMI deployments have used wireless mesh networks
and billing information using two-way communications [3]. for this application. Furthermore, it has been commented
Furthermore, through AMI, consumers can be provided in [3] that “traditional PLC and wireless mesh may well be
with historical data for energy consumption and dynamic replaced by broadband communications such as the IEEE
pricing, as well as suggestion to reduce peak load. his will 802.16e mobile WiMAX standard, broadband PLC or next-
encourage participation and response of the end users in generation cellular technologies” [3].
4 International Journal of Distributed Sensor Networks

Information from aggregation points to the utility is an objective of reducing the overall costs of an energy
transferred over the backhaul, which is typically a private distribution company. Lewis et al. [13] have summarized
network. Several technologies that have been employed communication methods for smart metering, based on both
include optical iber, T1, and microwave. To transfer data wired and wireless communications. In their opinion, the
from the hub to the utility, commercial wireless connectivity powerline communication (PLC) is an ideal option for data
can also be used. As compared to HAN and aggregation transmission between smart meters and the data concen-
points, a backhaul network likely requires lower latency and trator due to the requirement of low cost, low bit-rate
relatively higher bandwidth [3]. A detailed discussion on communications. A new code scheme is presented in [13] for
AMI and communication requirements for other smart grid orthogonal frequency-division multiplexing (OFDM) based
applications (i.e., demand response, wide-area situational PLC system against time varying noise.
awareness, distributed energy resources and storage, electric Singh and Vara [14] have applied smart metering tech-
transportation, and distribution grid management) can be nology in grid computing for optimizing the energy usage
found in [3]. of data centers. hey have introduced a new architecture
In general, communication infrastructure for smart grid to incorporate the smart grid with the conventional grid
should meet requirements for time synchronization, reliabil- computing system, where various meters, deployed in data
ity, latency, criticality of data delivery, and support for multi- centers, can provide real-time information about the energy
cast [2]. Furthermore, a major issue in networking commu- usage and costs. he proposed hierarchical architecture
nications in smart grid is interoperability. Standardization of includes data centers, communication layer, management
smart grid communication has received signiicant attention. systems, and energy suppliers, which can cooperate with each
A number of organizations that are working on this include other through a set of interfaces to avoid power outage and
IEEE, International Electrotechnical Commission (IEC), and reduce energy consumption during peak usage periods.
the National Institute of Standards and Technology (NIST). In summary, the smart grid can provide lexibility and
Several relevant standards from these organization are listed intelligence in electric power utility services. Reliable com-
in [2], which can be summarized as follows. munication is a key to achieve these objectives. Both wired
(i) IEEE. IEEE deined standards include IEEE C37.1 and wireless communications have been investigated and
(describes requirements of SCADA and automa- used in this context. However, issues related to reliable and
tion systems); IEEE 1379 (on communications and efective communications need to be further addressed.
interoperations of intelligent electronic devices and
remote terminal units in substations); IEEE 1547 3. Demand Response Applications
(speciies the electric interconnection of distributed
resources); and IEEE 1646 (on communication deliv- Demand-side management can be a major beneiciary of the
ery time for substations) [2]. smart grid systems. he key goal of demand-side manage-
(ii) IEC. IEC deined standards include IEC 60870 ment is to allow the utility company to manage the user-
(deines communication systems for power system side electrical loads. A very popular component of demand-
control and speciies requirements for power sys- side management is developing incentives for the smart
tem inter-operability and performance); IEC 61850 grid customer, such as residential home users, to modify
(deines automated control related to substation man- their temporal use of electricity, for reducing the peak-
agement); IEC 61968 and IEC 61970 (on model for to-average load on the grid. Incentives can come in the
data exchange between devices and networks); and form of lower pricing or coupons, among others. Note that
IEC 62351 (on cyber security of the IEC protocols) [2]. demand-side management is strongly connected to demand-
response models, as the two concepts can generally be
(iii) NIST. NIST published standards include NIST 1108
grouped under programs that seek to shape the demand and
(describes, among others, smart grid inter-operability
supply for a more eicient energy consumption in the smart
and requirement of communication networks); and
grid.
NIST 7628 (describes smart grid information security
issues) [2]. Demand-side management techniques are expected to be
a major step in the realization of the smart grid systems.
Researchers are also diligent in investigating the impacts Indeed, enabling the interconnection of consumers, electric
and issues in smart grids. For example, in [11], the authors cars, microgrids, and utility companies can only be made
have surveyed on the use of the smart metering system and possible with eicient demand-side management. Due to
in-home displays in residential environments of two diferent the complex interactions between customers and the power
sized cities in Korea. he survey results have indicated that, by company, as well as the need for pricing schemes, demand-
knowing the real-time feedback of power consumption, the side management has oten been studied using tools from
reduction in energy consumption can be up to 10% during game theory [15], optimization, and microeconomics [16].
the winter season [11]. here have been several contributions on demand-side man-
Optimal power low (OPF) formulation is a popular agement in the literature and these can be grouped into those
tool for minimizing the generation and operation costs in focused restrictively on the economic aspects [17–25] and
power system. Bruno et al. [12] have adopted this approach those that factor in grid-related issues such as frequency or
to address load control problem in distribution grids, with voltage regulation [26–29].
International Journal of Distributed Sensor Networks 5

In [19], a noncooperative game for load shiting is such as game theory, optimization, or stochastic control to
proposed. In this setting, each customer attempts to ind properly model and analyze the various arising demand-
the best way to schedule its appliances depending on the response situations. It can be expected that demand response
pricing information provided by the power company. It is will be an important stepping stone towards practical deploy-
shown that, under such a setting, whenever customers have ments of the smart grid.
enough “shitable” appliances, signiicant energy savings can
be reaped. Using particle swarm optimization, the work in 4. Microgrid and Integration of
[20] addresses the energy scheduling problem from a new
angle, by incorporating the presence of distributed energy Energy Sources
resources. Insights on the complexity of the optimization Recently, distributed generation (DG) has become extremely
problem are provided, to allow the customers to better important due to the growing global interest in reliable
determine the trade-of between complexity, cost, and the and sustainable electric power supply, to incorporate more
need to schedule their energy resources. In [28], the focus has renewable and alternative energy sources and to reduce the
been on the potential of demand response within a DC micro- stress and loss in existing transmission system [31]. In DG,
grid network. he proposed approach allows controlling the diferent energy resources can be incorporated to form an
parameters of the power electronic loads, so as to ensure energy system that can meet the demand of local users.
eicient grid operation. Using both optimization and pricing he emphasis in distributed generation is increasing as it
mechanisms, the merits of having demand response within a can also conveniently support electrical energy needs in
microgrid network have been shown. he idea of combining remote and rural areas [32], where no main utility power
demand response with grid constraints is also studied in [27] grid exists or is unreliable. A microgrid, in this context, refers
for AC networks. Here, the load management problem while to a controlled system of a cluster of loads and distributed
factoring in power low constraints has been studied. microenergy sources that can provide electrical power to
he use of storage units as a key element in demand-side its neighboring areas [9, 32]. It can efectively coordinate
management is studied in [23]. Here, it has been shown that diferent types of distributed energy resources through local
the use of storage can reduce peak demand, if the customers power managements.
act strategically. he results are then corroborated via an
empirical study on the UK market. he pricing problem as it he U.S. Department of Energy has deined a microgrid
relates to demand-side management is studied in [24] using as “a group of interconnected loads and distributed energy
a combination of game theory and auctions. here, the focus resources within clearly deined electrical boundaries that
has been on studying the possibility of selling energy stored acts as a single controllable entity with respect to the grid
at the customer premises to the grid and/or other customers. (and can) connect and disconnect from the grid to enable
Using the developed two-level game, it is shown in [30] it to operate in both grid-connected or island-mode.” A
that (a) a Nash equilibrium exists, even if pricing introduces microgrid is considered to be the building blocks of future
a discontinuity and (b) the overall allocation of energy at smart grids [33] with participation of multiple small-scale
the equilibrium outperforms conventional greedy solutions. renewable energy sources. A conceptual illustration of a
he study of user behavior in demand-side management is microgrid within the context of a smart grid is shown in
discussed in [18]. In this work, approaches are proposed, Figure 2.
using any of which, a power company can predict outages Electric power can be generated at a distribution level
or costs on the customers and, subsequently, ofer demand- in a microgrid. It usually includes a variety of small power
side management contract. Several insights on the feasibility generating sources, as well as energy storage systems such as
of demand response are provided. Shaping the demand is batteries, lywheels, and supercapacitors [31, 34]. he power
discussed in [17], using oligopolistic markets. he derived generating sources may include renewable sources such as
models provide a blueprint for integrating demand-side solar panels and wind turbines, which are typically located
management and appliance-level scheduling. Other notable- close to the consumer sites [31]. A microgrid can be coupled
related works include a study on the economics of load with the utility power grid through a single connection,
management in electric vehicle networks [22], incorporating known as point of common coupling (PCC). he electrical
reserve shortage prices [25], and quantifying the efect of user energy can low in either direction through this coupling,
participation [21], among others. based on the available energy generated within the microgrid
In a nutshell, demand-response schemes that enable and the demands of the consumers within the microgrid.
eicient management of the power supply and demand are A microgrid, when disconnected from the main grid, is
expected to be an integral part of the smart grid. One of known as an “islanded microgrid.” In an islanded microgrid
the key challenges of designing demand-side management operation, DGs continue to power the users of the microgrid
models includes the need for modeling customer behavior. without requiring to obtain electric power from the utility
Other challenges that must be overcome before deploying grid [33, 35]. he connect and disconnect processes in a
demand-response model include modeling customer partici- microgrid are speciied by the PCC.
pation, developing decision-theoretic tools, optimizing pric- he capability of islanding a microgrid ofers several
ing, incorporating time-varying dynamics (e.g., luctuating advantages and conveniences. For example, a microgrid can
demand), and accounting for power grid constraints. All of provide self-healing in the event of an outage or a power
these issues motivate the need for decision-theoretic tools quality problem in the utility grid by switching to islanded
6 International Journal of Distributed Sensor Networks

− −

Microgrid

Distribution
− Weather
station

Substation

Microgrid

Smart home

Bulk generation

Figure 2: An conceptual illustration of a microgrid.

mode and then can switch back once the disturbance is hese power electronic converters are connected parallel
over [31, 33]. Furthermore, a microgrid user can take power through a microgrid. In order to avoid circulating currents
from the utility grid at a time when not enough power is among the converters without the use of any critical com-
generated within the microgrid, or when the price of the munication between them, droop control method is generally
utility grid power is cheaper. On the other hand, any excess used; however, it sufers from load-dependent frequency and
power generated by energy sources in the microgrid can also amplitude deviations, which can be resolved by installing a
be fed into the utility grid. secondary controller, implemented in the microgrid central
Traditional power system is not designed to incorporate control [45].
power generation and storage at the distribution level. It is he output voltage of distributed energy resources can
also not designed to allow the distributed energy sources to be DC or AC with a variable frequency. Unregulated output
supply the power to the customers directly [34]. Intercon- voltage and intermittent nature of renewable energy sources
necting and integrating distributed energy sources to power require the use of power converters for integration of the
grid, therefore, is a challenging task. Due to the involvement energy sources to the utility grid [46]. Voltage sourced
of signiicant and critical technical issues associated with converters (VSC), coupled with isolating transformers, are
such integration, it has attracted signiicant research attention commonly used for this [46]. Designing grid connected VSC
[34]. For example, the operating characteristics of diferent systems may face issues, leading to a distorted line voltage. In
distributed energy sources can be diferent [36], which needs [46], modeling and control system design for a three-phase
to be addressed appropriately. In this regard, researchers have VSC system is investigated. Ater presenting a model for con-
investigated [34] the stability of a power system with the trol system design, simulation, and stability analysis, a control
integration of fuel cells and microturbines [37–39], large scale strategy that regulates active/reactive power generation and
wind turbines [40, 41] and solar panels [42, 43]. he weather mitigates the efect of grid voltage distortion on line currents
condition and time of the day can add further complexity is proposed in [46].
for wind and solar power generators [34]. herefore, it is A microgrid is desirable to have a simpliied operation
extremely important to have a clearly deined standard and capability so that an entity, for example, energy storage
procedure for integrating diferent distributed energy sources system, or a controllable load can be added without requiring
into microgrids [36]. a system level reconiguration. Proper control, or an energy
Power electronic can play an important role in microgrid management system, is imperative to ensure system stability,
integration. Distributed energy sources can interface with a reliability, and eiciency while integrating multiple energy
microgrid through rotating machines or through electroni- sources, storages, and controllable loads. he measurements
cally coupled units that utilize power electronic converters taken from diferent components of microgrids need to be
to provide the coupling media with the host system [44]. communicated to the control system that can then decide on
he interfaces between the microgrids and prime movers can optimal operation for each component, based on the available
be based on power electronic converters acting as voltage information of the current states and the operating conditions
sources (or voltage-source inverters in AC microgrids) [45]. [36].
International Journal of Distributed Sensor Networks 7

he control paradigm can be centralized, distributed, or and the contexts where smart grids are deployed. Deploying a
hybrid [36, 44]. In a centralized approach, microgrid central smart grid without strong and diligent security measures can
controller receives all measurements from a microgrid. It allow advanced cyberattacks to remain undetected, which
then makes decisions based on some prespeciied constraints can eventually compromise the entire system [47]. Inade-
and objectives, oten by prioritizing energy utilization among quate security measures can also compromise the stability of
the distributed energy sources in the microgrid, depending the grid by exposing it to, for example, utility fraud, loss of
on the market prices and security constraints [36, 44]. he conidential user information and energy-consumption data
various objectives can be conlicting and the multiobjective [48].
problems may not have a unique solution but instead may he cyber security objectives can be classiied into the
lead to some compromises and trade-ofs among the objec- following three categories [47, 49].
tives [36]. Microgrid central controller can issue control set
points to distributed energy sources and controllable loads, (i) Integrity. Protecting against the unauthorized modi-
which can be communicated over wired or wireless channels ication or destruction of information. Unauthorized
[44]. information access opens the door for mishandling of
information, leading to mismanagement or misuse of
In the distributed control paradigm, the measurement power.
signals from energy sources are communicated to the respec-
tive local controller. he local controllers, which commu- (ii) Conidentiality. Protecting privacy and proprietary
nicate among themselves to form a larger intelligent entity, information by authorized restrictions on informa-
and make decisions on the best possible set of operations tion access and disclosure.
to improve the overall performance of the microgrid [36, (iii) Availability. Ensuring timely and reliable access to
44]. his approach provides autonomy for distributed energy information and services. Availability can be compro-
sources and loads within a microgrid. A distributed approach mised by disruption of access to information which
facilitates integration of the energy sources. he load on undermines the power delivery.
each controller is reduced. It also eliminates the problem of Availability and integrity are the most important secu-
single-point failure [36]. However, it also greatly increases the rity objectives in the smart grid from the perspective of
communication complexity of the system [36]. his problem system reliability. However, due to the systems interactions
can be handled by intelligent algorithms, for example, fuzzy with customers, the importance of conidentiality is also
logic, neural networks, and genetic algorithms, as discussed growing in this two-way data communication system that
in [36]. For power management, system integration and interconnects the whole system including meters, collectors,
restoration, multiagent approaches have also been used to communications network, and utility data centers [47].
achieve the objective efectively [36]. Finally, the hybrid
control paradigm combines the above two schemes, where As mentioned earlier, smart grid has introduced new
distributed energy sources are organized in groups, and concepts in energy sector such as real-time pricing, load
centralized control is applied in each group. On the other shedding, demand management, and integration of dis-
hand, distributed control approach is used among the groups tributed, renewable power sources. It is based on numerous
[36]. control systems, which can be targeted by the attacker.
Furthermore, smart grid has created many more access points
In summary, microgrids can increase the reliability of and with commands emanating from interfaces in homes
power supply locally through active control of internal loads and businesses in HAN [47]; any of these access points can
and generations. It can incorporate renewable energy sources, be manipulated by the attackers to penetrate a network,
which helps to reduce environmental pollution [33]. Fur- gain access to control sotware, and alter load conditions to
thermore, it can limit feeder losses, improve voltage quality, destabilize the grid in unpredictable ways [47]. It is important
and provide uninterrupted power supply [32]. However, to note that attack at any point can afect the entire smart grid
integration rules must be made consistent [8] and technical as it is mostly based on mesh network, and any malignant
issues must be resolved before these beneits can be fully attack can propagate to the entire grid, as all components in a
reaped. smart grid can communicate with each other. One particular
point of concern in this regard is from a customer meter to
5. Security in Smart Grid the data collector, which can use wireless communication.
his can provide an opportunity to the attacker, if security
A smart grid is a large-scale system that extends from a mechanism is not adequate [47].
power generation facility to each and every power consuming Smart grid security mechanism should be enforced at
device such as home appliance, computer, and phone. his several layers including physical and logical layers [47]. Phys-
large-scale nature has increased the possibilities of remote ically, smart grid systems and component must be secured
operation of power management and distribution system. from harm, tempering, thet, vandalism, and sabotage. Exam-
With energy being a premium resource, ensuring security ples of physical layer security include installation of fence,
against thet, abuse, and malicious activities in a smart grid video surveillance, and alert system [47]. Security in the
is of prime concern. logical layer deals with protecting the digital data. In [47], a
he challenges of ensuring cybersecurity in a smart grid detailed discussion on logical layer security mechanisms has
are diverse in nature due to the diversity of the components been presented; a few of these are highlighted below.
8 International Journal of Distributed Sensor Networks

(a) Encryption. Data encryption in smart grid, from performed at a lower frequency without negatively afecting
meter to utility center, is a useful tool to prevent the performance of automatic load balancing mechanism.
snooping, hence preserving the conidentiality of Sampling for demand sensing and load balancing can be
data. Strong but eicient algorithms can be used; carried out in an anonymous manner at a higher frequency.
however, all smart grid devices, for example, meters,
collectors, processors, and routers, must be enabled (iii) Privacy Preserving Smart Metering. he information
with encryption processing capabilities [47]. network in a smart grid frequently transports conidential
information relating to customers, for example, identity,
(b) Authentication. It is the process of determining that a
location, possession of electronic appliances and devices,
user or entity is, indeed, the same as been claimed.
and power usage proile. Due to the increasingly important
Smart grid applications must have strong authenti-
role of privacy and proprietary information in a modern
cation capabilities, to detect and reject unauthorized
socioeconomic landscape, protecting the privacy of a user is
connections between its components, for example,
of signiicant importance. Several solution approaches have
meter and the utility interfaces [47].
been proposed in this regard, one of them is a privacy
(c) Application Security Controls. Smart meter applica- preserving smart metering scheme [52]. he steps of this
tions should be designed and coded appropriately so scheme are as follows.
that cybercriminals cannot access a meter to mount
bufer overlow attacks or to embed a malware. Data (i) he meter transmits certiied readings of measure-
validation is an example of techniques that can be ments to the user through a secured channel.
used [47]. (ii) he user calculates the inal bill by combining meter
(d) Security Patches. It can protect an application from readings with a certiied tarif policy.
known threats; therefore, codes should be kept up to
(iii) he bill is transmitted to the provider alongside a
date with latest security patches [47].
zero-knowledge proof that validates the calculation.
(e) Malware Removal. Use of antivirus and antispyware
sotware throughout the smart grid applications can No other data is transmitted from user to the service
help to detect and to remove malwares from the provider. By limiting the data exchange to only the billing
system [47]. information the user’s privacy is preserved. he proposed
approach in [52] has the lexibility to incorporate diferent
Ensuring cyber security in smart grid needs continuous tarif schemes as well as certiication techniques.
monitoring so that any possible attack can be detected in time
and appropriate actions can be taken quickly. Also, monitor- (iv) Distributed Data Aggregation for Billing. A distributed
ing various smart grid parameters can help identifying any incremental data aggregation approach for billing is pre-
suspicious or abnormal activity. Furthermore, having a rapid sented in [53]. A special entity, called the aggregator, acts as
restoration plan is also important [47]. the root of the aggregation tree that covers all the meters
Recently, some research has been done to address security in a given neighborhood. All smart meters in the given
issues in smart grid. In the following, a few approaches neighborhood follow the path dictated by the aggregation
proposed to handle security issues in the smart grid are tree to forward their data towards the aggregator. he data en
outlined. route is encrypted using homomorphic encryption. Homo-
morphic encryption represents a group of semantically secure
(i) Public Key Infrastructure. A public key infrastructure (PKI) encryption functions that allow certain algebraic operations
based solution is proposed in [50]. PKI is a mechanism that on the plaintext to be performed directly on the ciphertext.
binds public keys with unique user identities by a certiicate Data is aggregated at each node of the tree before being
authority (CA). Users have to obtain certiicate public keys of forwarded to the upper level. he aggregator is responsible
their counterparts from the CA before initiating secure and for maintaining communication with the service provider.
trustworthy communication with each other. he scope of Since the smart meters taking part in data aggregation and
a PKI also encompasses policies and procedures, speciic to forwarding can see only a fragment of the inal result, the
the security requirements of a domain, on a combination of user’s privacy is protected. It has been claimed in [53] that this
hardware and sotware platform. Under the scheme proposed approach is suitable for smart grids with repetitive routine
in [50], various participants in a smart grid require communi- data aggregation tasks.
cating through a PKI system. he security standards for such
a smart grid are also presented in [50]. (v) Collaborative Usage of Resources. he dynamic demand
against somewhat constant energy supply in a smart grid
(ii) Anonymization. he usage (of energy) data needs to be can be met by collaborative usage of resources. his allows
sampled at a high frequency for real-time load balancing a decentralized, somewhat autonomous, local distribution.
in a smart gird. his kind of data also exposes the most However, since several entities in a grid share the pool of
amount of sensitive information. An approach to protect this energy, it is also possible for one or more malicious entities
conidential information by anonymization is presented in on the grid to selishly demand more energy while depriving
[51]. he idea is that attributing the usage data is not required other users sharing the same pool. To counter this kind of
unless it is for billing purpose. Sampling for billing can be malicious or selish behavior, the concept of collaborative
International Journal of Distributed Sensor Networks 9

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security, microgrid, and integration of new grid elements
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of energy savings using smart metering system and IHD,” in
indicates that reaping the full beneits of the smart grid is
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Conflict of Interests Enabling Technologies, pp. 66–71, July 2009.
he authors declare that there is no conlict of interests [15] Z. Han, D. Niyato, W. Saad, T. Basar, and A. Hjørungnes, Game
regarding the publication of this paper. heory in Wireless and Communication Networks: heory, Mod-
els and Applications, Cambridge University Press, Cambridge,
UK, 2011.
Acknowledgments [16] E. Hossain, Z. Han, and H. V. Poor, Smart Grid Communications
and Networking, Cambridge University Press, Cambridge, UK,
Ataul Bari, Jin Jiang, and Arunita Jaekel would like to 2012.
acknowledge the inancial support for this work of NSERC. [17] L. Chen, N. Li, S. H. Low, and J. C. Doyle, “Two market models
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for their useful suggestions on this paper. EEE International Conference on Smart Grid Communications
(SmartGridComm ’10), Gaithersburg, Md, USA, October 2010.
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