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The economic dispatch (ED) problem is a large-scale optimization problem in electricity power grids. Its goal is to find a power output combination of all generator nodes that meet the demand of the customers at minimum operating cost. In recent years, distributed protocols have been proposed to replace the traditional centralized ED calculation for modern smart grid infrastructures with the most realistic being the one proposed by Binetti et al. (2014). However, we show that this protocol leaks private information of the generator nodes. We then propose a privacy-preserving distributed protocol that solves the ED problem. We analyze the security of our protocol and give experimental results from a prototype implementation to show the feasibility of the solution.