As smart grids continue to gain popularity, concerns are increasing that the two-way flow of information threatens privacy and could potentially compromise personal data. According to a new report by GlobalData, governments will be forced to spend major capital on securing smart grid infrastructure.
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.
The analysis firm said China’s cyber security market will expand remarkably in the coming years, from a valuation of $1.8 billion in 2011 to $50 billion by 2020, representing a dramatic compound annual growth rate (CAGR) increase of 44.7%. In the US, a lack of clarity about the ownership and responsibility over energy consumption data has raised concerns among the population about data safety, whereas in 2009 large scale consumer group protests in the Netherlands forced the Dutch government to back down from plans to enforce the mandatory installation of smart meters in all households.
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. 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.
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