Smart Grids and Privacy (Regulation and Competition‪)‬

Smart Grid systems increase the connectivity, automation and coordination of energy transmission and distribution between suppliers and networks, and consumers. Smart Grid technology can expand energy efficiency into the home by monitoring consumers' energy usage in real time and communicating with household devices that respond to demands to shut off during periods of non-use (e.g., during the work day, when businesses require more power resources), allowing individual consumers to control their electricity usage more effectively. Smart Grids are not unlike NGN (next generation networks) in the field of electronic communications. They represent a fundamental shift from the era of "dumb pipes" to that of "smart pipes" and the "Internet of things." The FCC sought comment on September 4, 2009 on the challenges associated with Smart Grid systems (1), asking (among other things) about how privacy aspects should be addressed. Smart Grid systems can hugely increase energy efficiency. But the opportunities and benefits of developing Smart Grid systems also come with potential privacy risks. One contributor to the National Institute of Standards and Technology's ("NIST's") Smart Grid Cyber Security Strategy and Requirements Interagency Report (U.S.) has identified ten potential data privacy concerns that should be addressed in developing Smart Grid technology standards (2). These privacy concerns are as follows: