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Now-a-days renewable sources are connected to the main grid which creates bi-directional power flow in the network. These sources can have variable and unpredictable impact on the system which can produce variable outputs. So, real and reactive power becomes variable throughout the hybrid power system. As a consequence the voltage and angle of the system diverges. Thus a faster technique is needed to compute these state variables for different buses. This paper introduces a modified Newton-Raphson (MNR) method along with modified LU decomposition, optimized acceleration factor and sparse memory allocation to reduce cost and increase speed which is even faster than conventional fast decoupled method. This modified algorithm is highly suitable for hybrid power system for its fast execution.