Smart meter security forecast: Heavy investment expected, but vexing vulnerability remains

Global investments in smart meter security will hit $575 million globally by 2015, but meters are still "one of the weakest links in the  smart grid security chain," according to Pike Research industry analyst Bob Lockhart. He said utility networks, commercial building networks and home area networks all do their job well in encrypting data within their domains. "However, these domains terminate at the smart meter, and the only way for data to pass from one network to the other is for the smart meter to decrypt the data from one side and re-encrypt it on the other," he explained. "Consequently, the data are, for a short while, unencrypted on the meter and could be successfully eavesdropped." Pike's analysis says a solution isn't expected to be in operation before 2012, but finding that solution could be a "significant business opportunity." The forecast also identifies security risks and which of them have been solved and which have not, business opportunities and anticipated market size.

Quick Take: Pike neatly summarizes the situation with the comment that, like all information technologies introduced in the last 50 years, cyber security was left at the starting line in the rush to get new devices up and running.

Stay connected with SGN …

Smart grid discussions: Get LinkedIn with Jesse

Join Smart Grid News on Facebook

Follow us on Twitter

Try our RSS feed

Get our email digest

You might also be interested in ...

Smart meter progress: better than you think (but about to get worse)

Smart meters: IEE estimates half of all U.S. homes will have them by 2020

Smart grid standards: Interoperability and cyber security standards ready for review

Smart grid security news and issues