Smart meter privacy based on adversarial hypothesis testing

Privacy-preserving energy management is studied in the presence of a renewable energy source. It is assumed that the energy demand/supply from the energy provider is tracked by a smart meter. The resulting privacy leakage is measured through the probabilities of error in a binary hypothesis test, which tries to detect the consumer behavior based on the meter readings. An optimal privacy-preserving energy management policy maximizes the minimal Type II probability of error subject to a constraint on the Type I probability of error. When the privacy-preserving energy management policy is based on all the available information of energy demands, energy supplies, and hypothesis, the asymptotic exponential decay rate of the maximum minimal Type II probability of error is characterized by a divergence rate expression. Two special privacy-preserving energy management policies, the memoryless hypothesis-aware policy and the hypothesis-unaware policy with memory, are then considered and their performances are compared. Further, it is shown that the energy supply alphabet can be constrained to the energy demand alphabet without loss of optimality for the evaluation of a single-letter-divergence privacy-preserving guarantee.