<p>The revolutionary advancements in power electronics have significantly improved the operations of conventional grids, as well as specific systems like traction railways, electric ships, and more electric aircraft. In direct current (DC) and multiterminal DC (MTDC) networks, researchers have leveraged advanced power electronic technologies and proposed various operational optimization techniques. In traction railways, the architecture of the electrical network is complex due to the dynamic nature of the distance between its nodes (traction substations and trains), requiring specific schemes to achieve optimized operation. In this paper, an adaptive droop control scheme is proposed to regulate power-sharing among voltage source converter (VSC)-based traction substations (TSs) in a deregulated railway electricity market. The proposed scheme enables increased power extraction from VSC-TSs with lower electricity costs. The control scheme incorporates an improved exponential droop function, which dynamically adjusts the droop value of the respective VSC-TS based on the electricity cost information of all VSC-TSs. The proposed droop scheme minimizes the cost of railway operations in a medium-voltage direct current (MVDC) railway electrification environment. To validate the proposed scheme, simulations have been performed in MATLAB/Simulink, and the results have been presented.</p>