Cisco Systems is looking at IPv6 as a  a critical component in securing the next-generation electricity distribution system.   IPv6 is attractive to the Smart Grid initiative for two reason, the first being an abundance of IP addresses available in the expanded 128-bit address space for all the gizmos they hope to sell in a market which Cisco pegs at $20 billion a year. “IPv6 is an interesting discussion and one that occupies a lot of bandwidth at Cisco,” Marie Hattar, Cisco’s vice president of network systems and security solutions marketing, told InternetNews.com. “Some people say that for smaller deployments, we could get away with IPv4, but the smart grid has a number of parts.”

The second benefit to the Smart Grid is the security features in IPv6 which will add a layer of protection to the vulnerable electric grid management systems.  Security is also now top of mind as the Department of Homeland Security (DHS) is now investigating a report into potential threats to the West Coast power grid. Earlier this year, widely circulated reports noted that foreign entities—presumably from China—infiltrated the U.S. power grid on several occasions and have the ability to disrupt power distribution.

At the 2009  Black Hat security conference, a security researcher detailed security vulnerabilities in smart grid meters. “If you think about hacking into a smart meter, it’s like hacking into your TV’s remote control — you still get your TV,” Hattar said. “The meters are a reporting mechanism but it’s not going to affect the electrical system.” Still, Hattar added that smart meter vendors are concerned about security and Cisco will work with them. “A key part is to build out an end-to-end framework that is secure,” Hattar said. “A lot has to do with isolation and not exposing the grid to points of entry that are hackable.”

“As utilities are looking to build out smart grid, it’s more effective to agree on a common protocol across the board as opposed to trying intermix different ones,”  Hatter says, “In many ways, this is like the early days of the Internet where we ultimately settled on IP. We see IP as the scalable protocol for smart grid and we’re working with a variety of vendors to advocate this and make this the key protocol of choice.”

Cisco is among the numerous IT vendors with initiatives for improving the power grid.  IBM is working with several of its partners on power grid issues through its Smart Planet program.

There’s likely to be subsidiary benefits to the smart grid, like furthering the cause of IPv6  since since tens of millions of users and new devices around the world will require connectivity. For example, with utilities adopting IP-enabled metering for thousands of homes connected to the network, there could be an issue with addressing over IPv4. On IPv6, thanks to its plentiful address availability, there are no addressing issues.

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Not only is this a technological issue, but it is an energy policy issue. An electrical grid which can support Smart meters, will allow energy producers to better control the flow of electricity, which will increase the efficiency of the electrical grid, which will in turn decrease our dependence on fossil fuels. America needs to get off of electrical generation by fossil fuels and the this technology can speed the process, before it is to late and gasoline reaches $7.00 a gallon making the current recession seem like a walk in the park.