Privacy preserving Double Auction using Secure Multiparty Computation for Local Electricity Markets

A major challenge for the implementation of local electricity markets (LEM) with small-scale prosumers is to ensure the security and privacy of data. The prosumers will need to reveal their future energy usage to the market operator (MO), which is a huge privacy concern. To address this issue, this paper presents a double auction model for local electricity markets, where the MO does not have access to the individual prosumer’s bids, ensuring complete privacy for prosumers. The scheme uses Pallier encryption cryptosystem which allows aggregation of prosumer bids without the need for decryption. The MO receives only the aggregated prosumer bids, for implementing the double auction algorithm. The proposed scheme is illustrated through a case study with 15 prosumers in a LEM.