Publication

Abstract : This paper presents a novel Integrated Double-Sided Auction (IDSA) mechanism for efficient and fair energy trading in day-ahead electricity markets. The proposed approach addresses limitations in conventional double-sided and Dutch auction methods by enabling simultaneous participation of both energy buyers and sellers with bid and offer flexibility. The IDSA framework optimizes market clearing based on bid prices, supply-demand balance, and load shares. The algorithm dynamically matches consumer bids and generator offers using real-time market data. Comparative analysis with conventional methods namely Dutch Auction and Double-Sided Auction (DSA) mechanisms demonstrate improved bid acceptance rate, reduced untraded energy volumes, and more equitable power allocation achieved by the proposed model. Extensive simulations are conducted on the Dutch Auction, DSA and IDSA using the IEEE 30-bus system and validated with actual dataset from the Northern Regional Power Grid (NRPG) in India. Results show that IDSA increases traded volume by upto 80 % over conventional DSA and by approximately 8 % over Dutch auctions in the IEEE 30-bus system, by approximately 26 % over DSA and approximately 2 % over Dutch for the NRPG data, while also improving bid acceptance rates and reducing untraded power. Paired t-tests confirm the statistical significance of these gains, and game-theoretic and incentive analysis experiments demonstrate that the mechanism is robust to bid shading and limited collusion, with strategic gains below 3 %. Scalability analysis indicates linear runtime growth with participant count and predictable memory usage, while maintaining high efficiency and fairness for upto 1000 participants. Comparisons with pro-rata and iterative splitting demonstrate the effectiveness of IDSA interms of welfare and fairness index. Finally, feasibility evaluation verifies IDSA’s integration into Indian exchanges (IEX/PXIL) and SCADA/EMS, incorporating ramp/commitment via MILP-extended DC-OPF, with prosumer DR yielding 12 % untraded reduction, consistent with CERC via uniform caps, suggesting potential 15–20 % improvements in infrastructure utilization under DC-OPF assumptions and simulated congestion, supporting IDSA’s technical and economic viability for day-ahead operations.