An Integrated Energy and Reserve Market Framework for Efficient Grid Balancing Using Condition-Driven Double Auction Mechanisms

The integration of renewable energy sources, particularly solar photovoltaic systems, into energy markets has introduced significant variability and unpredictability, challenging the stability of grid operations. Traditional reserve power procurement strategies, reliant on spinning and non-spinning reserves from conventional generators, are costly and inflexible. This paper proposes a reserve market framework leveraging a condition-driven double auction mechanism to address these challenges. By dynamically matching reserve buyers and reserve sellers based on bid and offer prices under predefined conditions, the proposed framework ensures efficient resource allocation, equitable cost-sharing, and transparency. Simulation results demonstrate the effectiveness of the proposed framework in balancing supply and demand, reducing operational costs, and increasing market participation. The proposed framework also provides flexibility to accommodate diverse operational cases, offering reserve buyers lower expenses while incentivizing reserve sellers with fair compensation. Additionally, it facilitates enhanced collaboration among market participants and reduces dependency on distribution system operator interventions, encouraging a more resilient energy market. The results highlight the potential of the proposed framework to transform reserve market operations, aligning with the principles of efficiency, equity, and adaptability necessary for modern grid demands.