Smart Grid, Business Analytics and Optimization, Privacy by Design - why, how, when and IEC.. Presented by: Yosi Shneck Israel Electric Corporation Lt.d. Why? How? When? And IEC
IEC Who we are? The Israel Electric Corporation was established in 1923 Sole integrated electric utility in the State of Israel Generates, transmits and distributes substantially all the electricity in the State of Israel One of the largest industrial companies in Israel 2
Israeli Energy Market Operating Statistics Power plant Gas Turbines 3
WHY? Why? 4
Smart Grid Modifies the Customer concept The traditional Customer concept is dramatically changing From the traditional customer perception of the utilities Consumer (using our product indirectly) To consumer, supplier, competitor, partner. Why? 5
Smart Grid Modifies the Relations The communication between the utility changed to bi- directional, intensive, diverse. Huge number of data creating components embedded in the supply chain smart home devices, synchrophasors, sensors are creating endless stream of information. Why? 6
BAO & Privacy The richness and diversity of information is not the only Privacy threat. Use of sophisticated Business analytics and optimization tools and a techniques enables creation of second layer of information and knowledge. This layer of information to cause be bigger threat to the privacy than the direct information as it includes unpredicted, not seen, sometimes manipulative knowledge about the customer. Actually, the BAO is beneficial if used smartly but misuse becomes crucial to the privacy of the individuals, companies, organizations and the society Why? 7
How? How how how how How? 8
Way of Action Foundations Stabilizing the foundation: IT governance and practices Data security tools and procedures Adoption of security design and development standards and procedures. Understand the difference between Security and Privacy. How? (1) Privacy Diagnostic Tool (PDT), Ann Cavoukian, Ph.D., Commissioner 9
Way of Action Privacy by Design To mobilize the high level management as change agents and define accurately their responsibility for this issue. To add the Privacy and its importance to the codex of the organization as one of it s basic values. To translate the 7 principles(1) of the PbD to actions incorporated in the daily standard organizational processes, procedures, workflows and formalities Make it a Default! To create an educational environment as a part of the training program of the organization. How? (1) Privacy Diagnostic Tool (PDT), Ann Cavoukian, Ph.D., Commissioner 10
Way of Action Smart Grid & BAO Smart Grid is an concept build up from various devices, systems, technologies. Producers, suppliers and integrators should be obliged to implement PbD in their products and processes Utilities must demand the PbD as a part of their standard RFP s in tender and bidding processes. As a part of the SmartData concept BAO systems should be equipped not only with data analyzing agents but also with the second layer products analyzing agents Smartlytics. A PbD dedicated test and control procedures should be implemented for the whole system life cycle. In addition professional committee should be established to analyze and understand the second layer products and approve them for use. How? 11
When? When? 12
Now? Privacy awareness and protection of an organization are involving resources, knowledge, techniques, understanding but the most difficult issue is the organization culture. It should be part of the Smart Grid initiative from the first beginning for example, be a measure in different maturity models for smart grid implementation. Now is too late; but, better late than never. When? 13
. IEC - Israel Electric Corp. 14
IEC - Activities Smart Grid Maturity model done Road Map before approval Processes definitions in progress ITC architecture in progress Derived projects AMI First stage finished (strategic customers) EV Design Smart City Design Technology Pilots in execution BAO/EBI - Design IEC 15
Foundation: IEC - Privacy High level ITG & Security awareness, architecture, control & implementation. Management: Privacy as one of the main values of IEC s Ethical Code. Controlled by a committee of Board of Directors Guided by the Law department Guided and controlled by the internal audit & control department. Procedures: Set of organizational procedures covering privacy law, regulations and internal routines IEC 16
Partly implemented IEC - Privacy By Design Still part of the data security team Educational program in preparation Design & development PbD tools and standards partly finalized RFP PbD requirement section final stages before approval. Audit & control procedures - in progress IEC 17
Questions & Thank You 18
Contact Yosi Shneck VP, Information Systems & Communications, CIO Israel Electric POB 10 Haifa 31000 Israel Email: yosi.shneck@iec.co.il For more information on IEC www.israel_electric.co.il 19