Privacy Preserving Billing in Local Energy Markets with Imperfect Bid-Offer Fulfillment

This paper proposes a novel privacy-preserving billing and settlements protocol, PPBSP, for use in local energy markets with imperfect bid-offer fulfillment, which only uses homomorphically encrypted versions of the users’ half-hourly consumption data. PPBSP also supports various cost-sharing mechanisms among market participants, including two new and improved methods of proportionally redistributing the cost of maintaining the balance of the grid in a fair manner. An informal privacy analysis is performed, highlighting the privacy-enhancing characteristics of the protocol, which include metering data and bill confidentiality. PPBSP is also evaluated in terms of computation cost and communication overhead, demonstrating its efficiency and feasibility for markets with varying sizes.