Abstract
In this paper, we introduce a secure energy trading auction approach to schedule the power plant limited resources during peak hours time slots. In the proposed auction model, the power plant serving a power grid shares with the smart meters its available amount of resources that is expected during the next future peak time slot; smart meters expecting a demand for additional power participate in the power auction by submitting bids of their offered price for their requested amount of power. In order to secure the power auction and protect smart meters' privacy, homomorphic encryption through Paillier cryptosystem is used to secure the bidding values and ensure avoiding possible insincere behaviors of smart meters or the grid operator (i.e. the auctioneer) to manipulate the auction for their own benefits. In addition, we use a payment rule that maximizes the power plant's revenue. We propose an efficient power scheduling mechanism to distribute the operator's limited resources among smart meters participating in the power auction. Finally, we present simulation results for the performance of our secure power scheduling auction mechanism.