Cyber Insurance for Plug-In Electric Vehicle Charging in Vehicle-to-Grid Systems

V2G systems bring many benefits to power systems in stabilizing energy demand and supply fluctuations as well as to PEV users in reducing energy costs. To achieve the maximum efficiency of V2G systems, data communication plays an important role. However, it is subject to cyber attack and failure, which hinder the effectiveness of V2G systems. In this article, we introduce a novel concept of using cyber insurance to "transfer" cyber risk from a user to a third party in PEV charging. We first introduce V2G systems and briefly discuss the cyber risks. Additionally, the basic concepts of cyber insurance are presented. We then introduce the use of cyber insurance to remove the risk of paying high energy costs of PEV charging due to the unavailability of data communication. We show that the PEV user can achieve the maximum benefit in deciding to charge its PEV and to buy insurance.