sparks – financial, legal and social implications€¦ · © the sparks consortium eu fp7...

© The SPARKS Consortium EU FP7 Programme Contract No. 608224

Sparks – Financial, Legal and Social Implications

SPARKS Stakeholder Workshop Cork, Ireland March 25th 2015 Michael Schmidthaler, Johannes Reichl Energieinstitut at the Johannes Kepler University Linz, Austria


Agenda

Assessment of power outage costs – Connect test beds with Blackout-simulator.com – Evaluation of various power outage scenarios

Economic test beds (SWW and 2 additional DSO)

Public acceptance of SG infrastructure (Smart Meters in particular) – Do security measures improve public acceptance? – Economic experiment: Value of data security/privacy

Block 1 Block 2

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http://www.blackout-simulator.com/


Block 1: Outage Cost assessment

The costs for security measures range from 0 to ∞ we apply an opportunity cost approach!

“What is the value of uninterrupted power supply?” Aim: assess the societal benefits of different

security levels e.g. as developed in SPARKS – First economic test bed has been started!

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Assess the opportunity costs of not improving security

SWW – Wundsiedel first economic test bed

Joint evaluation by top-down and bottom-up approach blackout-simulator.com + DSO-specific elicitation

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blackout-simulator.com






Assessment of power outage costs in economic test beds

1. Energy - Analysis of DSO-specific load profiles – Sectoral differences in terms of power dependency – Yearly, weekly, daily load profiles at sector level

2. Economic

– Analysis of value-added processes – Number of inhabitants, socio-demographics, …

3. Operational capabilities

– Restoration time,…

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Analysis at DSO level – briefly!

SWW – first economic test bed: – Methodology has been developed – Easy-to-implement for DSO (research is cost neutral)

Daily load: 1 Shift profile Annual load: highly seasonal profile 6

Examples of the assessment done at

DSO level


Benefits to DSO/Community

Knowledge of sector-specific damages & households – Identify vulnerable customer segments – Energy not supplied (kWh), Value of Lost Load (€/kWh),…

Economic test Beds: Joint consideration with security costs and reduced probability of major interruptions – Important for: regulatory negotiations, investments, etc...

Methodology developed in Sparks Research is cost neutral to you!: win-win situation!

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Next steps

1. Define security layers; transfer technical details to economic costs & risk reduction

2. Conduct 2 additional economic test beds – methodologyHigh synergies DSO welcome

3. Macroeconomic evaluation of improved security

4. Provide policy recommendations on

security/privacy policies 8


Block 2: Socio-Economic Research on Infrastructure Acceptance

What drives acceptance of customer-side SG appliances “How are Smart Meters accepted?” – What is the monetary valuation of security/privacy in $? – Should data e.g. be transmitted to central aggregator? – What are the driving factors: income, education, gender

Or put differently: How do we get a better understanding of “the value of privacy/security”?

We have an idea: Empiric experiment! How is it done?

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Acceptance/Preference evaluation

One example for this: Assessment of traditional power infrastructure - FP7 (EU 27, N=8,300) – „How would you react to a suggested infrastructure

project (e.g. power pylon) within 250 m of your home?“

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Probability of non-acceptance varies substantially in Europe

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What changes that preference structure? Effects of different benefits

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Preference assessment in SPARKS

We aim at doing the same (analysis of customer acceptance) for Smart Meter data! – „Which value would you put onto the security of your

personal power consumption data?“ This is feasible by means of an discrete choice econometric setup – We have one idea!

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An Experiment – Research Idea

Data can be accessed (i.e. for research) upon approval by customer transmission via DSO

This is current situation: Data access is possible, though tedious

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An Experiment – Future Scenario

The premium for security of data is what we are

interested in

Customers are given a real offer to buy SM data for scientific

purposes (€ for data)

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Real purchase/sale decision

Only 2! different purchase scenarios (simplicity) – Purchse of SM data for research directly from customer

(DSO) using a „secure“ transmission method – Acquisition by – fictional – aggregator and subsequent

transmission to researchers Changes in monetary pay-off

– Data security compromised? – Real pay-off – Target N ≈ 500

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Summary: Economics in SPARKS

1. Assess the costs of NOT providing security/power supply to customers! Three economic test beds

2. Find out which security/privacy settings influence peoples‘ acceptance of SG/Smart Meters – I.e. How secure must data be stored/transmitted? – What is the monetary value of security/privacy

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Thank you!

Dr. Michael Schmidthaler Dr. Johannes Reichl [email protected] Energieinstitut at the Johannes Kepler University Linz, Austria Further Information on economic experiments and assessment tools: [email protected], www.blackout-simulator.com & www.energieinstitut-linz.at

mailto:[email protected]







http://www.energieinstitut-linz.at/




Breakout session

Definition of Security/privacy standards – Do frameworks exist which are associated with different levels (e.g. for privacy/security).

Our approach to monetarise opportunity costs of "not-installing" rely on these very

standards...

3 economic test beds (Gerhard): IDEAS who might be interested.

We deem it absolutely important to present the benefits of this (cost quantification) Goal: acquiring the remaining 2 partners for such test beds... NIST triple AAA to maybe B2 or something similar? Or, more colloquially: M490 sub prime to M490 deluxe safe! This would help significantly and was raised also during the last WP5 internal meeting in

Linz (together with Manfred and Gerhard).

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