A Framework for Risk Analysis in Smart Grid

Smart Grids have great potential for the management of energy consumption. However, moving from a traditional grid to a smart grid introduces significant new risk to the energy sector that were not present in the power grids that operated in isolation. The data that is generated in the smart metering systems can possibly harm its stakeholders. Hence it is important to protect all the stakeholders by providing effective controls to the vulnerable elements in the smart metering system. This highlights the necessity to conduct a risk analysis to evaluate the harms, threats and vulnerabilities that are introduced into this critical infrastructure by modernization. Currently there are numerous risk analysis methodologies available; there are many differences among them, and hence selecting an appropriate one is challenging. Risk that technical experts perceive to be minor often elicits strong public concerns. Consequently during risk analysis, different perspectives need to be considered. This article reports on an extensive analysis of risk management frameworks, which resulted in a framework specifically targeted at smart grid and smart metering systems. Perspective of risk analysis is a key element in this framework.