A Closed-Loop PX–ISO Framework for Staged Day-Ahead Energy and Ancillary Clearing in Power Markets

As modern power markets integrate more renewable generation, day-ahead energy clearing remains the central procurement step, while flexibility products are procured to ensure that the cleared energy schedule can be operated securely. This paper proposes a closed-loop framework linking the Power Exchange (PX) and the Independent System Operator (ISO) to bridge energy-market settlement and network-feasible operation. The PX performs staged day-ahead clearing with energy settled first, followed by aAutomatic generation control (AGC) and spinning reserve (SR) procured from the residual headroom of committed (energy-awarded) units. The ISO then validates the cleared schedule using an equivalent current injection (ECI)-based screening. This paper uses a single-period (single-hour) IEEE 30-bus case setting; multi-period scheduling and intertemporal constraints are not modeled. When congestion is detected, power-flow tracing identifies the main contributors and guides a minimal-change redispatch. The ISO-feasible dispatch is then sent back to the PX for re-clearing, aligning prices and welfare with an executable operating point. The resulting nonconvex clearing problems with valve-point effects and prohibited operating zones are solved by Artificial Protozoa Optimizer with Social Learning (APO–SL) and evaluated against representative metaheuristic baselines. IEEE 30-bus studies show that off-peak and average-load cases pass ISO screening directly, whereas the peak case tightens reserve headroom (SR capped at 39.08 MW) and triggers congestion. After ISO feedback and energy re-clearing, line loadings return within limits. The ISO-feasible dispatch changes the marginal accepted offer and lifts the MCP (3.73 → 4.38 $/MWh). The welfare value reported here follows the paper’s settlement-based definition (purchase total minus accepted offer cost), and it increases accordingly (113.77 → 190.17 $/h).