Privacy-friendly secure bidding scheme for demand response in smart grid

Smart grid is an emerging technology because of its attractive features, such as distributed energy control and robust load fluctuation management. Demand Response (DR) system is an important component of smart grid as it can help maintaining demand-supply balance and controlling electricity bills at the user end. One of the visions of smart grid technology is communication between consumers and suppliers to facilitate certain types of DR strategies such as demand bidding (DR-DB). DR-DB is one kind of incentive-based DR, where certain incentives are awarded to consumers who participate in DR events. However, security and privacy of DR-DB bidding process are of paramount importance as consumer data is used during the process. In this paper we propose a secure and private bidding protocol for incentive-based demand-response system using cryptographic primitives without assuming any trusted computing or trusted third party. Alongside security and privacy, we show that consumer´s registration, revocation of consumers by the system, and incentive claim by the winning bidder are very easy to handle.