Provided is a trusted PKG-free threshold proxy signature method based on the identity safety of a smart power grid. According to the signature method, a signer interacts with a PKG and then obtains a private key pair (xid, yid) and a public key pair (Xid, Yid) of the PKG; proxy signers are authorized according to a verifiable secret sharing scheme, and it is supposed that P1, P2, ... , Pt are the t proxy signers, the t proxy signers will cooperate to generate a proxy signature of a message m; each proxy signer Pi generates a proxy signature part and sends the proxy signature part to a verifier C, and if all the proxy signature parts pass verification, the C combines the proxy signature parts into a valid threshold proxy signature. The method has higher execution efficiency due to many steps of precomputation and guarantees the security features of privacy, proxy protection, unforgeability, non-repudiation, strong identifiability and the like of the valid threshold proxy signature.