© 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
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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
2
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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!
3
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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
4
blackout-simulator.com
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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,…
5
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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!
7
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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?
9
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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?“
10
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
Probability of non-acceptance varies substantially in Europe
11
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
What changes that preference structure? Effects of different benefits
12
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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!
13
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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
14
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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)
15
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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
16
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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
17
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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
© The SPARKS Consortium EU FP7 Programme Contract No. 608224
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).
19
Top Related