  The introduction of advanced communication infrastructure into the power grid
raises a plethora of new opportunities to tackle climate change. This paper is
concerned with the security of energy management systems which are expected to
be implemented in the future smart grid. The existence of a novel class of
false data injection attacks that are based on modifying forecasted demand data
is demonstrated, and the impact of the attacks on a typical system's parameters
is identified, using a simulated scenario. Monitoring strategies that the
utility company may employ in order to detect the attacks are proposed and a
game--theoretic approach is used to support the utility company's
decision--making process for the allocation of their defence resources.
Informed by these findings, a generic security game is devised and solved,
revealing the existence of several Nash Equilibrium strategies. The practical
outcomes of these results for the utility company are discussed in detail and a
proposal is made, suggesting how the generic model may be applied to other
scenarios.
