On the Challenges and Opportunities of Smart

Meters in Smart Homes and Smart Grids

Zainab Al-Waisi Michael Opoku Agyeman
Department of Computer and Immersive Technologies Department of Computer and Immersive Technologies
University of Northampton, UK University of Northampton, UK
Zainabalwaise@yahoo.com Michael.OpokuAgyeman@northampton.ac.uk

ABSTRACT other information to the customer [3], [4]. It is expected

Nowadays, electricity companies have started applying smart grid that based on smart meter information, significant energy
in their systems rather than the conventional electrical grid and financial savings can be achieved [5]. The large-scale
(manual grid). Smart grid produces an efficient and effective installations of smart meters will generate a massive amount of
energy management and control, reduces the cost of production, data which can offer the company a unique insight of the power
saves energy and it is more reliable compared to the conventional consumption of different consumers. This information can be
grid. As an advanced energy meter, smart meters can measure the used to help consumers to shift their consumption from peak
power consumption as well as monitor and control electrical hours, which can result in significant savings of the energy
devices. Smart meters have been adopted in many countries since
the 2000s as they provide economic, social and environmental
benefits for multiple stakeholders. The design of smart meter can
be customized depending on the customer and the utility company
needs. There are different sensors and devices supported by
dedicated communication infrastructure which can be utilized to
implement smart meters. This paper presents a study of the
challenges associated with smart meters, smart homes and smart
grids as an effort to highlight opportunities for emerging research
and industrial solutions.

CCS Concepts
• Hardware → Sensor applications and deployments •
Hardware → Wireless devices Hardware → Networking
hardware
Figure 1. An example model of smart eletric meter and smart
Keywords gas meter
Smart grid; Smart Meters; Sensors; Energy Management
1. INTRODUCTION
Traditionally, electromechanical meters or basic electronic
meters have been used to measure energy consumption [1].
These types of meters require sending the suppliers to the
energy meter location for meter readings and other manage-
ment tasks such as meter disconnection. This is exercabating
considering the high number of customers [2]. Smart meters
have become increasingly popular for calculating, controlling
and measuring power consumption, gas and water (Figure
1). A smart meter is an electronic device which used to
record and transmit the information of electricity, water or gas Figure 2. Metering architecture (Conventional Meter Vs
consumption. The data is then normally stored on a server Smart Meter) [7]
which will be used for further operations like calculating the Table 1. Comparison between Smart Grid and Conventional
consumption fees, showing consumption statistics or showing Grid
Conventional Grid Smart Grid
Permission to make digital or hard copies of all or part of this work for Electromechanical Digital Meters
meters
personal or classroom use is granted without fee provided that copies are
not made or distributed for profit or commercial advantage and that One way Two-way communications
communication
copies bear this notice and the full citation on the first page. Copyrights
for components of this work owned by others than ACM must be Few sensors Multiple sensors
honored. Abstracting with credit is permitted. To copy otherwise, or Manual monitoring Automatic monitoring
republish, to post on servers or to redistribute to lists, requires prior Limited control Unlimited control
specific permission and/or a fee. Few Customer Many customer choices
Request permissions from Permissions@acm.org. choices
ISCSIC '18, September 21–23, 2018, Stockholm, Sweden Manually generate Automatically generate fees
© 2018 Association for Computing Machinery. fees
ACM ISBN 978-1-4503-6628-1/18/09…$15.00 Centralized Distribution generation
https://doi.org/10.1145/3284557.3284561 generation
[6]. Also, it can help electricity scheduling to facilitate safe 2.2 An Overview of Smart Grid and Smart
and efficient operation of the power system. Smart cities adopt Home
smart grid and smart meters.
1) Smart Grid: The term of smart grid refers to the
Figure 2 and Table I shows the difference between smart modern power grid, which involves the generation, distribution,
meters and conventional meters as well as smart grids and management, controlling, and automatically collection of elec-
conventional grids, respectively. As shown in Figure 2 smart tricity consumption data [7]. A smart grid is an electrical grid
meters provide efficient communication between customers which uses (digital and/or analog signals (modern technology))
and utility companies. By using smart meters, the system will in order to collect and communicate the electricity information
automatically send the information from the client unit to the of both suppliers and consumers. Smart grids installation
central unit and vice versa. The client unit is responsible for improve the efficiency of the system by contributing to the
distributing data over the network to the utility company. Thus, efficient transmission and distribution of the electricity. The
the utility company has the ability to produce a billing for installation of the smart grid means to change the electricity
the customer, which has all information about the energy con- system infrastructure. For example, the replacement of elec-
sumption and other information. Moreover, Table I shows that tromechanical and digital meters with smart meters to promote
smart grid can be equipped to automatically monitor the energy sustainability and system efficiency [9].
unlike the conventional grid. Smart metering technology allows
the ease to switch between suppliers and different payments. In Nowadays, the architecture of smart grid has been de-
addition to providing the consumers and electricity suppliers scribed using several frameworks, U.S. National Institute of
with information on the current electricity consumptions, smart Standards and Technology (NIST) [10] proposed a model
meters enhance the monitoring of the quality of the power which can be considered as one of the most widely adopted.
supply for different connections. This model visualizes the smart grid as a set of seven in-
terconnected domains. These domains are (Clients, Markets,
This paper presents a study of recent contribution to smart Service Providers, Operations, Bulk Generation, Transmission,
metering in smart homes and smart grids. Particularly, we and Distribution). The first four domains (Transmission, Dis-
explore the challenges associated with smart meter design tributed, Customers, and Bulk Generation) focus on generating
in order to identify research and design opportunities. The and distributing the energy of smart grid. Also, these domains
remainder of the paper is structured as follows: Section II, are for ensuring that the communication is effective between
presents a background reading of smart grids, smart homes and the customer side and AMI side. However, the other remaining
smart meter architectures. Section III dicusses various enabling domains (Markets, Operations, and Service providers) are
communication technologies for smart meter design. Section responsible for managing, distributing market energy.
IV, discusses the challenges associated with smart meters,
smart home and smart grid. Here, various security measures For this case study, the architecture of smart grid proposed
are also discussed. Finally, Section V concludes the paper. by [11] is adopted. Figure 3 shows the different layers of the
smart grid. The first layer represents the power consumers
2. BACKGROUND READING (e.g. homes, buildings or industrial areas, electrical vehicles,
etc.). These different types of the power consumers connect
2.1 Home Energy Management System to the internet via wire or wireless network, that connect
The Home Energy Management System (HEMS) is used appliances with smart meters and energy management device,
to manage the power supply of a specific house. The main responsible for reporting the energy consumption to the grid at
reason for using HEMS is to reduce the energy consumption by any given time as well as sending messages from the grid back
encouraging the consumers to reduce the power consumption to the meter. The first layer is therefore considered as the unit
when the energy becomes high. Advanced Metering Infras- responsible for collecting electricity consumption [11], [12].
tructure (AMI) is the network between smart grid and the The second layer, one can find Neighbourhood Area Net-
services of the home network, whereas, Automatic Meter- works (NANs) i.e., networks that cover small geographic areas
ing Reading (AMR) and Automatic Metering Management which are responsible for connecting the smart meter with
(AMM) are implemented using a smart meter. A smart meter the distribution access point, which used to send the collected
is an important component in AMI and support all AMR data to the third layer. Remote Terminal Device (RTD) is an
operations by monitoring and controlling electrical devices, electronic device used to transmit the data to the Supervisory
energy consumption at home. The smart meter used to send the Control and Data Acquisition System (SCADA) system at
data to the utility company for making a decision of generating (third layer). The second layer would be considered as the
and distributing the power. In addition, generating the bill to sending information unit [10], [12].
the consumer. The utility company sends the smart meter data
to the consumer and display the energy consumption prices At the third layer (top) one can find Wide Area Networks
on smart meter display (e.g. LCD) in order to encourage (WANs) used to connect multiple NANs. All the data collected
the customer to reduce their power consumption as well as by the NANs is delivered at this top layer. The SCADA is
have more information the about energy consumption of their esponsible for managing and distributing the received data. The
electrical devices. The main advantage is that, smart meters Meter data Management (MDMS) is responsible for billing
give accurate monitoring and control of the power supply. the customer depends on their consumption. The Demand Re-
The smart meter requires communication infrastructure and sponse Management Systems (DRMS), the Lord Management
gateway in order to collect all individual smart meter data. Systems (LMS), the Outage Management Systems (OMS) and
Furthermore, smart meters can be used to automatically control the Customer Information Systems (CIS), can all found in this
smart home electrical devices [8]. third layer [10], [12].
 2) Smart Home architecture : The architecture of smart 1) Utility company: responsible for managing, control-
home consists of two parts (internal, and external environ- ling meter data, generating bills and etc. Usually,
ment). The external environment of the smart home consists the utility company connects to the (data-concentrator
of smart grid entities and the entity which is responsible for network) through WAN and the communication chan-
connecting the smart home with the smart grid. On the other nel can be (e.g. WIFI, satellite, etc.).
hand, internal environment consists of all electrical appliances 2) Data-concentrator network: the communication be-
and devices belonging to the smart home. The entity inside tween (data-concentrator network) and smart meter
the smart home managing these appliances can be called a might be through (e.g. Wi-Fi, power line carrier,
smart meter. Specific entities within the network of smart ZigBee, etc.). Data-concentrator consists of smart
home represent the internal and external environments. An meters and the data collector. Usually, the form of
entity called Entity Services Interface (ESI) represents the a smart meter is a wireless mesh network. The meter
external environment. However, Energy Management system reading data will be forwarded to the data collec-
tor through different communications (e.g. multi-hop
communication). Then the data collector will transmit
the data to the utility company.
3) Home Area Network: this network has a gateway
which receives the power consumption from the smart
meter and displays it on (e.g. LCD display, Smart-
phone, laptop, etc.). The consumer has the ability
to monitor and control the smart meter as well as
remotely control the appliances in their home.
4) Smart meter: used to measure the power consumption
of any electrical device and send the data to the data
collector through Home Area Network. The data is
then sent to the utility company.

2.3 Why Smart Meters?

The term smart meter refers to the meter functionalities
Figure 3. Smart Grid layers of remote control of the energy, the automatic measurement
of the electricity consumption and the generation of bills. It
(EMS), represent the internal environment. The ESI can be was called AMR which used one-way communication and the
considered as the interface between smart home and smart ability to automatically read the electricity usage each month.
grid. It enables to control of all appliances(e.g. light switches, The capability of AMR was a simple functionally to read the
washing machine, air conditions, etc.) and the distribution of electricity consumption. However over time, a major upgrade
the energy resources to the neighbourhood collection points. of meter functionalities occurred after integrating the meter
Also, it used for monitoring all the data. Thus, ESI responsible with two-way communication, which has been called AMI
for sending the information from internal environment to the [13]. AMI constitutes monitoring and recording of the energy
external environment and send these data to the control unit usage information as well as ease to transfer these data between
via the internet. Figure 4 shows the internal and external the utility company and the consumers. Smart meters enable
environment of smart home, highlighting the EMS and ESI. real-time pricin and data for the consumer and utility company;
remote control of appliances and operations; monitoring of

Table 2. Benefits of Smart Meters

Problems Solutions
Cost: employee By using smart meter, there is no need to have an
working at a employee to gather smart meter data.
specific company
to gather smart meter
consumption from
houses.
Time: sending the By a short time the data will be sent from smart meter
employee to the to the server and vice versa.
consumers home is
time consuming.
Security issue: With smart meter all information encrypted and saved in
within the traditional a secure place such as database.
meters. Information
related to the
consumers can be
lost at any time.
Difficult to manage Easy to manage and control smart meter
Figure 4. Smart Home Architecture and control smart
meter device.
The main functionalities of each component in a smart Consume more Safe energy
energy
home are:
power quality; easy detection of energy theft; communication every 50-60 minutes or once a day. The data collector then
with all other intelligent devices at home; easy to transfer me- sends the meter information to the utility company through
ters’ information from home to the utility company throughout WAN.
the network; easy to notify the consumers about the energy There are two basics types of meter system communication
consumption; enhanced safety and eco-friendliness [14]. Table technologies: (i) Radio Frequency (RF) (ii) Power Line Car-
2 shows the issues of conventional meters and what the benefits rier (PLC). The utility company chooses the best technology
of replacing them with smart meters. depending on their needs. There are different factors which
affect the selection of technology, such as [15]: 1. Existing
However, conventional electromechanical meters served as
infrastructure. 2. Economic impact to the utilitys customer, as
the utility cash register for the most of its history. In other
well as impact on legacy equipment, technical requirements,
words, these meters used to record the total energy con-
and functionality.
sumption over a period of time. Smart meter design incolves
the following key components [9]: 1. Smart meter circuit 3.1 Radio Frequency (RF)
board with the communication module; 2. Server/control unit;
3. Data concentrator unit; 4. Mobile device/Website/ screen With Radio Frequency (RF) communication technology,
for displaying different information; 5. Another devices and the smart meter collects the data from the consumer then send
sensors; Generally, the energy consumed measured by the it to the data collector through a wireless radio. Afterwards,
smart meter (using a specific sensor) will be sent to the central the data is delivered to the utility. There are two types of RF
unit. After that, the central unit sends this information to the technologies:
client unit. Figure 5 illustrates the architecture of smart meter
Point-to-Point Technology: Within this technology, the
working. The key features of a smart meter can be summarised
smart meter communicates directly to with the collector, usu-
as: a) Two-way communication; b) Automatically collect the
ally a tower. Various techniques have been proposed to transmit
data; c) Store the data in a safe place such as (database);
the data from the smart meter to the utility company via a tower
d) Automatically generate the bill for consumers; e) Real-
collector [15]. Point-to-Point have several benefits such as
time measure the electricity consumptions; f) Display data;
large bandwidth, direct communication with the endpoint and
g) Security functions
enhanced throughput. However, Point-to-Point RF technology
suffers from issues with remote areas (with topography and
long distances) and interface with distribution automation
devices.
Mesh Technology: With Mesh RF technology, smart me-
ters communicate with each other via a Local Area Networ
(LAN) cloud form at the collection point. The data is trans-
mitted to the utility using various Wide Area Network (WAN)
methods [16]. Mesh has a wide bandwidth with operation
frequency and acceptable latency of about 915 MHz. However,
Mesh technology has some disadvantages also suffers from
remote area coverage.

3.2 Power Line Carrier (PLC)

Power Line Carrier (PLC) technology allows data to be
transfered between the smart meter and the utility company
using the utility power lines. PLCs are cost-effective for
rural lines which makes it possible to work with over long
distance. On another hand, PLCs have long latencies for data
transmission (compared to RF technology), less bandwidth and
higher cost in cities.
In the conclusion, the utility company have to choose the
most suitable communication technology depending on their
needs.

Figure 5. Smart meter 4. METER ISSUES AND CHALLENGES

In general, replacing the traditional meter with a smart
meter can be done with more advantages. However, the design,
3. SMART METER TECHNOLOGIES deployment and maintenance of the smart meter lead to dif-
Smart meters vary in technology and design. However, all ferent issues and challenges. Furthermore, the implementation
smart meters operate through a simple overall process [15]. of a smart meter in a distributed system requires spending
Smart meter collect the data from customers appliances and a tremendous amount of money to invest as well as the the
transmit the meter data to data collector through the internet network and related software tools. Consequently, replacing the
(e.g. Local Area Network (LAN)). The data can be transmitted conventional meters with a smart meter may be a challenging
for utility companies and customers. Though several devices for everybody such as (admin, staff, and users).
are integrated with smart meter system, the full benefit of
these devices extent only when all the appliances and devices 4.2 Security attacks and smart Home/Grid
in the distribution and metering network are included in the There are two main categories of attacks. Usually, these
communication network [17], [18]. Integrating of these devices attacks attempt to compromise the security goals, which have
becomes more complicated as a huge number of customers been described in Section IV-A. The first category is Passive
start using the smart meter [17]. attacks. This type of attack usually learn from attacking infor-
Additionally, smart meters create potential privacy and mation without affecting the system resources. In other words,
security issues as the data and signals are transmitted via in the passive attack, the attacker usually obtain information
a network. Furthermore, the data might also have different being transmitted not to modify it but to learn from it (Figure
information about the customer (e.g. sensitive information). 6).
In addition, having information about the appliances such as The second category is Active attack, which effects the
what appliances are in use, appliances IDs, etc. via a network system operations or resources. Active attacks can modification
might pose security threats [19]. In order to communicate the
data and control signals with the central unit, smart meters
have to run these commands of controlling devices from the
utility companies. Smart meters operations involve a huge
quantity of data to be transferred between smart meters and
the server as well as the consumers system. Thus, securing
these data and choosing the right network can be a difficult
job (to prevent attackers). Moreover, several smart meters
communication networks use a low bandwidth, which leads
to generating a high traffic and limits in the quantity of data
to be transmitted. These problems make the data unsecure.
Integrating of these devices will lead to a huge quantity of
data transmitted the need to have a memory to store these
data. These requirements could lead to increase the overall
deployment costs.
There are different issues related to the security vulnerabil-
ities and these issues might be related to (weak authentication,
quality the software, weak protocol, weak network, weak error
handling, etc.). In spite of these issues, some utility companies Figure 6. Passive Attack
pay less attention to the maintenance of their communication
networks and these can lead to safety issues. Even if these the data or cause a negative effect on the system. The most
companies use wired communication, in this case, a physical common amongst types of this attack are data modification,
damage to the cable might also cause an interruption in data denial of service, distributed denial of service, replay, a man
transfer [17]. in the middle, IP address spoofing, password-based attack,
sniffer attack and SQL injection. A data modification attack
4.1 The Security Objectives of Smart modifies the original content of the data (message), or reorders
Home/Smart Grid the content, or causing a delay with the aim of providing
Smart home/grid security is an important role in smart an unauthorized access. A denial of service attack sends
cities. Nowadays, vulnerabilities of the internet have been different requests (usually about 1000 requests per minute)
increased significantly, so it is important to keep all (e.g. to the server via the network to interrupt the communication
sensors data, wireless connections network, Cloud, Database, resources of a system. Distributed denial of service is similar
consumers information) secured over the network. The security to a denial of service attack, but the requests can be sent via
goals of smart home/grid are expected to meet the first step of multiple compromised resources (usually with more than 1000
building smart meters for ensuring the consistent of the smart requests per minute). A replay attack, capture of a message in
grid. Thus, to ensure a secure smart meters, it must have the a communication and resend it to produce an unauthorized
following properties: effect. Man in the middle attack usually occurs when the
Confidentiality: to ensure that data can be accessed only by network is in a low level of communication and the data
individuals or systems or trusted people in the utility company. are not encrypted. Thus, a man in the middle attack can
Integrity: to ensure that the reliability and consistency of all easily read the data, control and exchange it or even try to
data will be maintained. interrupt the communication between two resources. IP address
Availability: to ensure that all data, website, network, servers spoofing allows attackers to easily modify or control devices
can be accessed only by any authorized entity. Also, the system with IP addresses. Password based attacks target the system
should make sure to protect against any threats or attacks. password so it is important to hash the password to prevent
Authenticity: the system has to ensure that all received unauthorized access. Sniffer attack tries to view the content
messages are sent from authorized people. of sent and/or receiv data. Thus, if the data is encrypted or
Authorization: to ensure that the right identification is used hashed successfully, it will be difficult to the attacker to view
for everybody in the system, in order to ensure access control it or even interpret. Figure 7 shows the process of active attack.
4.3 Impact of Federal Information Processing metering is explored in details to highlight required security
goals, various types of attacks and how these attacks could be
Standard avoided or resolved. Future work involves the development of
Federal Information Processing Standard (FIPS) 199 [20], a smart electricity meter that is equipped with both automatic
requires Federal agencies to assess the system information, monitoring of energy consumption as well as control of
and they categorize them confidently, integrity, availability, and various appliances in a smart home over Internet-of-Things
authenticity into three different categories. These categories infrastructure.
are Low (L), Moderate (M), High (H). (i) Low (L): if the
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