Security has become a main concern for the smart grid to move from research and development to industry. The concept of security has usually referred to resistance to threats by an active or passive attacker. However, since smart meters (SMs) are often placed in unprotected areas, physical security has become one of the important security goals in the smart grid. Physical unclonable functions (PUFs) have been largely utilized for ensuring physical security in recent years, though their reliability has remained a major problem to be practically used in cryptographic applications. Although fuzzy extractors have been considered as a solution to solve the reliability problem of PUFs, they put a considerable computational cost to the resource-constrained SMs. To that end, we first propose an on-chip-error-correcting (OCEC) PUF that efficiently generates stable digits for the authentication process. Afterward, we introduce a lightweight authentication protocol between the SMs and neighborhood gateway (NG) based on the proposed PUF. The provable security analysis shows that not only the proposed protocol can stand secure in the Canetti-Krawczyk (CK) adversary model but also provides additional security features. Also, the performance evaluation demonstrates the significant improvement of the proposed scheme in comparison with the state-of-the-art.
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