Smart grids are slowly becoming the future of worldwide energy generation and distribution and they promise, among other things, numerous environmental, and energy efficiency benefits to society. At the same time, however, they are capable of severely invading the inviolability of the most privacy-sensitive placethe home. Therefore, these concerns must be duly taken into consideration while deploying smart grids. This chapter provides an overview, from the European legal perspective, smart grids challenges to the fundamental rights to privacy, personal data protection, and the way Europe has addressed them. It pays special attention to the relevant regulatory requirements and to the means available to properly address these challenges, especially the data protection impact assessment (DPIA). It concludes by a few observations on the efficiency of the European approach.
IntroductionSmart meters are digital versions of traditional mechanical utility meters that include a two-way communication capacity. They are currently most commonly used for electricity metering, but the principles can be applied to other utilities. These meters can transmit information directly from the metered property to the utility company, potentially in near-real time and with a much higher granularity of data. (By contrast, a traditional meter records the amount of electricity or gas used over a time period and can potentially distinguish between peak and off-peak hours based on a clock). Often, various smart meters in a neighbourhood form a mesh wireless network with a single collection point, which connects to the operating company over a phone line or the Internet. Smart meters are a component of the smart grid, a modernization of electrical infrastructure, with the intended effects of being more responsive to and better able to manage energy demands, and better able to integrate multiple sources of energy. Smart meters are typically the property of the distribution company, not the recipient householder or business. Distribution companies may be different to the electricity retailer, who bills the recipient.