A Comprehensive Analysis of Imbalance Signal Prediction in the Japanese Electricity Market Using Machine Learning Techniques

Power system imbalances pose significant challenges to maintaining grid stability and ensuring efficient market performance, particularly in the context of the Japanese electricity market. The primary drivers of these imbalances are identified as the nonlinear responses of power generation and consu...

Full description

Saved in:
Bibliographic Details
Main Authors: Kaiyao Jiang, Yuji Yamada
Format: Article
Language:English
Published: MDPI AG 2025-05-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/18/11/2680
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849722371245604864
author Kaiyao Jiang
Yuji Yamada
author_facet Kaiyao Jiang
Yuji Yamada
author_sort Kaiyao Jiang
collection DOAJ
description Power system imbalances pose significant challenges to maintaining grid stability and ensuring efficient market performance, particularly in the context of the Japanese electricity market. The primary drivers of these imbalances are identified as the nonlinear responses of power generation and consumer electricity demand to uncertain variables such as temperature and solar radiation, in addition to complex factors such as planned generator outages and operational constraints. Consequently, the prediction of imbalance signals using linear models is inherently challenging and requires the adaptation of more advanced methods in practice. This study comprehensively analyzes imbalance signal dynamics and develops practical forecasting tools using Machine Learning (ML) techniques. By incorporating a diverse range of features—including lagged imbalance data, weather forecast errors specific to Japan, and temporal patterns—we demonstrate that the prediction accuracy of imbalance signals is significantly improved compared to a baseline reflecting random forecasts based on class distribution observed during the initial training period. Furthermore, the proposed approach identifies the key drivers of hourly imbalance signals, while leveraging out-of-sample forecasting models. Based on these findings, we conclude that the use of multiple predictive models enhances the robustness and reliability of our forecasts, offering actionable tools for improving forecasting accuracy in real-world operations and contributing to a more stable and efficient electricity market.
format Article
id doaj-art-1ff233eb756c4eb580909e6352e33c8c
institution DOAJ
issn 1996-1073
language English
publishDate 2025-05-01
publisher MDPI AG
record_format Article
series Energies
spelling doaj-art-1ff233eb756c4eb580909e6352e33c8c2025-08-20T03:11:22ZengMDPI AGEnergies1996-10732025-05-011811268010.3390/en18112680A Comprehensive Analysis of Imbalance Signal Prediction in the Japanese Electricity Market Using Machine Learning TechniquesKaiyao Jiang0Yuji Yamada1Graduate School of Business Sciences, University of Tsukuba, Tokyo 112-0012, JapanInstitute of Business Sciences, University of Tsukuba, Tokyo 112-0012, JapanPower system imbalances pose significant challenges to maintaining grid stability and ensuring efficient market performance, particularly in the context of the Japanese electricity market. The primary drivers of these imbalances are identified as the nonlinear responses of power generation and consumer electricity demand to uncertain variables such as temperature and solar radiation, in addition to complex factors such as planned generator outages and operational constraints. Consequently, the prediction of imbalance signals using linear models is inherently challenging and requires the adaptation of more advanced methods in practice. This study comprehensively analyzes imbalance signal dynamics and develops practical forecasting tools using Machine Learning (ML) techniques. By incorporating a diverse range of features—including lagged imbalance data, weather forecast errors specific to Japan, and temporal patterns—we demonstrate that the prediction accuracy of imbalance signals is significantly improved compared to a baseline reflecting random forecasts based on class distribution observed during the initial training period. Furthermore, the proposed approach identifies the key drivers of hourly imbalance signals, while leveraging out-of-sample forecasting models. Based on these findings, we conclude that the use of multiple predictive models enhances the robustness and reliability of our forecasts, offering actionable tools for improving forecasting accuracy in real-world operations and contributing to a more stable and efficient electricity market.https://www.mdpi.com/1996-1073/18/11/2680system imbalance signalmachine learningexplainable AInext-day forecastingJapanese electricity marketrenewable energy
spellingShingle Kaiyao Jiang
Yuji Yamada
A Comprehensive Analysis of Imbalance Signal Prediction in the Japanese Electricity Market Using Machine Learning Techniques
Energies
system imbalance signal
machine learning
explainable AI
next-day forecasting
Japanese electricity market
renewable energy
title A Comprehensive Analysis of Imbalance Signal Prediction in the Japanese Electricity Market Using Machine Learning Techniques
title_full A Comprehensive Analysis of Imbalance Signal Prediction in the Japanese Electricity Market Using Machine Learning Techniques
title_fullStr A Comprehensive Analysis of Imbalance Signal Prediction in the Japanese Electricity Market Using Machine Learning Techniques
title_full_unstemmed A Comprehensive Analysis of Imbalance Signal Prediction in the Japanese Electricity Market Using Machine Learning Techniques
title_short A Comprehensive Analysis of Imbalance Signal Prediction in the Japanese Electricity Market Using Machine Learning Techniques
title_sort comprehensive analysis of imbalance signal prediction in the japanese electricity market using machine learning techniques
topic system imbalance signal
machine learning
explainable AI
next-day forecasting
Japanese electricity market
renewable energy
url https://www.mdpi.com/1996-1073/18/11/2680
work_keys_str_mv AT kaiyaojiang acomprehensiveanalysisofimbalancesignalpredictioninthejapaneseelectricitymarketusingmachinelearningtechniques
AT yujiyamada acomprehensiveanalysisofimbalancesignalpredictioninthejapaneseelectricitymarketusingmachinelearningtechniques
AT kaiyaojiang comprehensiveanalysisofimbalancesignalpredictioninthejapaneseelectricitymarketusingmachinelearningtechniques
AT yujiyamada comprehensiveanalysisofimbalancesignalpredictioninthejapaneseelectricitymarketusingmachinelearningtechniques