game theoretic analysis of advanced metering infrastructure adoption
DESCRIPTION
Game theoretic analysis of Advanced Metering Infrastructure adoption. Dipayan Ghosh Cornell University. with Stephen Wicker , Dawn Schrader, William Schulze and Lawrence Blume. 11/2/2011. Electricity market crisis. 800% increase in electricity prices over 6 months. - PowerPoint PPT PresentationTRANSCRIPT
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Game theoretic analysis of Advanced Metering Infrastructure adoption
Dipayan GhoshCornell University
with Stephen Wicker,Dawn Schrader, William Schulze
and Lawrence Blume11/2/2011
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Electricity market crisis
800% increase in electricity prices over 6 months
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Daily Load Profile
6/1/2011 0:00 6/1/2011 2:45 6/1/2011 5:30 6/1/2011 8:15 6/1/2011 11:00 6/1/2011 13:45 6/1/2011 16:30 6/1/2011 19:15 6/1/2011 22:000
5000
10000
15000
20000
25000
NE load
Five-Minute Timestamp
Syst
em L
oad
(MW
)
Data: ISO-NE
5% decrease in load would have led to 50% lower prices
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Advanced Metering Infrastructure (AMI)
Consumer-end metering system• Two-way communications between AMI
modules and other management devices• Detailed information for utility
Fast response to demand and supply signals
Real-time prices• Demand response• System load levelization• Cost reductions
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Privacy concerns of AMI
Temporally precise, fine granularity consumer data
Data collection
Utility
Household
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Identifiable consumer behavior [4]: (a) aggregate power consumption data; (b) derived switch events; (c) load events; (d) reference and estimated presence intervals
Privacy concerns of AMI
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Privacy-aware design principles
1. Provide full disclosure of data collection2. Require consent to data collection3. Minimize collection of personal data4. Minimize association and identification of
data with individuals5. Minimize and secure data retention
Fair Information PracticesDepartment of Health, Education and Welfare
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Privacy-aware architecture for AMI
[5]
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Issues with implementation
Energy industry resistant to change• Welfare assessments
PA-AMI has limited benefits to utilities• Denying utility access to consumer information
eliminates avenues for profit Consumers unaware of privacy risks• Financial value of personal data• How to analyze issues analytically?
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AMI adoption game
v: value of consumer privacy of consumption data
e: cost of opting in (or out) of DR program
s: savings to consumer associated with AMI adoption
g: profit to utility from sale of consumption data
l: savings to utility from DR program
c: AMI installation cost
n : risk to utility of DR program termination
r: expected penalty for sale of consumption data
[2]
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AMI adoption game
Game theoretic analysis of AMI game between a representative individual consumer and the utility [2]. The desired Nash equilibrium for implementation of privacy-aware AMI is {AM, PA-AMI}
[2]
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AMI adoption game
Requirements for PA-AMI adoption• Risk of selling data (r) must be greater than the
difference between the profit from collecting data (g) and the risk of public outcry against NPA-AMI (n)
r > g - n• Consumer savings must be greater than the
consumer’s cost of effort of adopting AMIs > e
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Regulatory regimes for AMI introduction
Requirements for PA-AMI adoptionRegime 1: (1) v + s -2xv – xs – xe –yv – ys > 0 ; (2) v + s – xv – xs – yv – 2ys – yd > 0
Regime 2: v + s – zv – 2zs – zd > 0
Regime 1: standard power meter (SM) retention permitted
Regime 2: advanced metering upgrade requirement
[1]
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Conclusions and future work PA-AMI adoption rates Regression model for privacy valuation Willingness-to-Pay v. Willingness-to-Accept PHEV and V2G privacy risks
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Questions
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References1. D. Ghosh, D. Schrader, W. Schulze, and S. Wicker, “Economic analysis
of Advanced Metering Infrastructure adoption,” ISGT USA ‘12.2. D. Ghosh, S. Wicker and L. Blume, “Game theoretic analysis of
Advanced Metering Infrastructure,” ISGT Europe ‘11.3. D. Ghosh and S. Wicker, “Designing a privacy-aware framework for
vehicle-to-grid implementation,” working 2011.4. M. Lisovich, D. Mulligan, and S. Wicker, “Inferring personal
information from demand response systems,” IEEE Security and Privacy, Feb 2011.
5. S. Wicker and R. Thomas, “A privacy-aware architecture for demand response systems,” HICSS ‘10.
6. S. Wicker and D. Schrader, “Privacy-aware design principles for information networks,” Proceedings of the IEEE, 2011.