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With improvement in smart grids through two-way communication, demandresponse (DR) has gained significant attention due to the inherent flexibilityprovided by shifting non-critical loads from peak periods to off-peak periods,which can greatly improve grid reliability and reduce cost of energy. Operatorsutilize DR to enhance operational flexibility and alleviate network congestion.However, the intelligent two-way communication is susceptible to cyber-attacks.This paper studies the benefits of DR in security-constrained economic dispatch(SCED) and then the vulnerability of the system to line overloads whencyber-attack targets DR signals. This paper proposes a false demand responsesignal and load measurement injection (FSMI) cyber-attack model that sendserroneous DR signals while hacking measurements to make the attackundetectable. Simulation results on the IEEE 24-bus system (i) demonstrate thecost-saving benefits of demand response, and (ii) show significant lineoverloads when the demand response signals are altered under an FSMI attack.

Benefits and Cyber-Vulnerability of Demand Response System in Real-Time Grid Operations