Shahid Beheshti University International Journal of Research and Technology in Electrical Industry 2821-0190 3 1 2024 06 01 A Literature Review on Bilateral Contracts in Electricity Markets; Perspectives and Challenges 327 337 104735 10.48308/ijrtei.2024.235791.1047 EN Mohammad Mehdi Amiri Electrical Networks Research Institute (ENRI),Tehran, Iran Mohammad Heydarizadeh Iran Grid Management Company (IGMC), Tehran, Iran Reza Zarifi Iran Grid Management Company (IGMC), Tehran, Iran Hamid Reza Bagheri Iran Grid Management Company (IGMC), Tehran, Iran Journal Article 2024 02 22 Academics and practitioners are becoming increasingly interested in the role and function of bilateral contracts in the complex and ever-evolving landscape of electricity markets. Bilateral contracts in the electricity sector involve two parties trading goods and services between themselves, which is accompanied by a unique set of advantages and challenges. A significant portion of energy transactions are governed by this distinctive form of contract, which serves as a mechanism for hedging against price volatility, ensuring supply security, as well as facilitating market stability. Here, we provide a comprehensive analysis of the state-of-the-art research and developments in bilateral contracts in the electricity market. In this paper, we discuss the importance of bilateral contracts in the future of electricity markets, how these contracts can be evaluated, how they contribute to market stability, and the challenges and perspectives associated with them. The purpose of this paper is to review new studies related to bilateral contracts, as well as to analyze and review the models used in these contracts. By emphasizing the technical, economic, and regulatory aspects of such contracts, this paper aims to direct researchers, policymakers, and participants toward effective decision-making. https://ijrtei.sbu.ac.ir/article_104735_df73bee961122f8bb7b1accfa66978dc.pdf