  In this paper, the privacy and security issues associated with the
transactive energy system (TES) deployment over insecure communication links
are addressed. In particular, it is ensured that (1) individual agents' bidding
information is kept private throughout hierarchical market-based interactions;
and (2) any extraneous data injection attack can be quickly and easily
detected. An implementation framework is proposed to enable the
cryptography-based enhancement of privacy and security for the deployment of
any general hierarchical systems including TESs. Under the proposed framework,
a unified cryptography-based approach is developed to achieve both privacy and
security simultaneously. Specifically, privacy preservation is realized by an
enhanced Paillier encryption scheme, where a block design is proposed to
significantly improve computational efficiency. Attack detection is further
achieved by an enhanced Paillier digital signature scheme, where a
stamp-concatenation mechanism is proposed to enable detection of data replace
and reorder attacks. Simulation results verify the effectiveness of the
proposed cyber-resilient design for transactive energy systems.
