  Phasor measurement units (PMUs) provide accurate and high-fidelity
measurements in order to monitor the state of the power grid and support
various control and planning tasks. However, PMUs have a high installation cost
prohibiting their massive deployment. Minimizing the number of installed PMUs
needs to be achieved while also maintaining full observability of the network.
At the same time, data integrity attacks on PMU measurements can cause mislead
power system control and operation routines. In this paper, a bi-level
stochastic non-cooperative game-based placement model is proposed for PMU
allocation in the presence of cyber-attack risks. In the first level, the
protection of individual PMU placed in a network is addressed, while
considering the interaction between the grid operator and the attacker with
respective resource constraints. In the second level, the attacker observes the
placement of the PMUs and compromises them, with the aim of maximizing the
state estimation error and reducing the observability of the network. The
proposed technique is deployed in the IEEE-9 bus test system. The results
demonstrate a 9% reduction in the cost incurred by the power grid operator for
deploying PMUs while considering cyber-risks.
