Privacy Protection and Cost of Privacy in Smart Grid

Smart Grid is closely integrated with new technologies such as the internet of things, advanced information communication technologies, sensor measurement, and automatic control technologies, including many smart devices. A smart meter is a key component of the smart grid. The data collected from the smart meter can be used to control and manage power grids. These data provide considerable benefits to the system operator and the consumers but raise issues related to the privacy of individual customer information. One method to provide differential privacy for individual customers is to add noise to the aggregated demand. However, noisy demand affects the optimality of the system. This article optimizes noise in demand reporting and calculates the additional system cost due to this noise. In addition, to distribute the extra cost among the customers fairly and equitably, the Shapley value method is used. The effect of line congestion on the privacy cost is also analysed and results shows that privacy cost is increased due to line congestion.