Modern power systems depend on Cyber-Physical Systems (CPSs) to link physical devices and control technologies. A major concern in the implementation of smart power networks is to minimize the risk of data privacy violation (e.g., by adversaries using data poisoning and inference attacks). In this paper, we propose a privacy-preserving framework to achieve both privacy and security in smart power networks. The framework includes two main modules, namely: a two-level privacy module and an anomaly detection module. In the two-level privacy module, an enhanced Proof of Work (ePoW) technique based blockchain is designed to verify data integrity and mitigate data poisoning attacks, and a Variational AutoEncoder (VAE) is simultaneously applied for transforming data into an encoded format for preventing inference attacks. In the anomaly detection module, a Long Short Term Memory (LSTM) deep learning technique is used for training and validating the outputs of the two-level privacy module using two public datasets. The results highlight that the proposed framework can efficiently protect data of smart power networks and discover abnormal behaviors, in comparison to several state-of-the-art techniques.

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