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Smart grid has recently emerged as the next generation of power grid due to its distinguished features, such as distributed energy control, robust to load fluctuations, and close user-grid interactions. As a vital component of smart grid, demand response can maintain supply-demand balance and reduce users' electricity bills. Furthermore, it is also critical to preserve user privacy and cyber security in smart grid. In this paper, we propose an efficient privacy-preserving demand response (EPPDR) scheme which employs a homomorphic encryption to achieve privacy-preserving demand aggregation and efficient response. In addition, an adaptive key evolution technique is further investigated to ensure the users' session keys to be forward secure. Security analysis indicates that EPPDR can achieve privacy-preservation of electricity demand, forward secrecy of users' session keys, and evolution of users' private keys. In …