Abstract
Negotiation of secure bilateral transactions has become an important issue for better operation, planning and management of competitive electricity markets. In this paper, secure bilateral transactions have been determined with minimum deviations in economic generation schedule and real power losses for hybrid electricity markets. The generation pattern and real and reactive power loss has been obtained for both pool and bilateral demand. The secure bilateral transaction has also been determined minimizing only deviations from the scheduled transactions. The results obtained with different cases have been compared. AC Distribution Factors (ACDF) considering the impact of slack bus have been utilized for determining the line flows to consider the impact of bilateral contracts. The proposed approach has been applied on IEEE 24-bus reliability test system (RTS).