Paper 2026/1093 Original: eprint.iacr.org/2026/1093 ↗

Anonymous yet Verifiable Privacy-preserving Demand Response

Abstract

Demand Response (DR) in energy systems is a flexibility mechanism enabling consumers to modify their electricity demand in response to signals from network operators, designed to ensure power grid reliability. In particular, incentive-based DR programs, in which consumers provide load reduction in exchange for financial remuneration, have proven more effective than alternative approaches such as price-based programs. However, incentive-based approaches have taken only partial account of privacy considerations, mainly because they require smart meters to disclose user energy baselines and consumption patterns to aggregators in order to determine rewards. In this paper, we propose a privacy-preserving scheme that supports incentive-based DR programs while ensuring the confidentiality of user data and identities. We prove that our scheme provides data privacy, participation privacy, and public verifiability, and we present a prototype implementation together with a performance evaluation. Our results show that our construction is practical for real-world DR deployments with considerably large user populations.