Hybridising Neurofuzzy Model the Seasonal Autoregressive Models for Electricity Price Forecasting on Germany’s Spot Market

Electricity price forecasting has become an area of increasing relevance in recent years. Despite the growing interest in predictive algorithms, the challenges are difficult to overcome given the restricted access to relevant data series and the lack of accurate metrics. Multiple models have been...

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Main Authors: Dorel Mihai Paraschiv, Narciz Bălășoiu, Souhir Ben-Amor, Raul Cristian
Format: Article
Language:English
Published: Editura ASE 2023-05-01
Series:Amfiteatru Economic
Subjects:
Online Access:https://www.amfiteatrueconomic.ro/temp/Article_3208.pdf
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author Dorel Mihai Paraschiv
Narciz Bălășoiu
Souhir Ben-Amor
Raul Cristian
author_facet Dorel Mihai Paraschiv
Narciz Bălășoiu
Souhir Ben-Amor
Raul Cristian
author_sort Dorel Mihai Paraschiv
collection DOAJ
description Electricity price forecasting has become an area of increasing relevance in recent years. Despite the growing interest in predictive algorithms, the challenges are difficult to overcome given the restricted access to relevant data series and the lack of accurate metrics. Multiple models have been developed and proven to work in the area of EPF. This paper proposes a new univariate hybrid model, trained, and tested on German electricity market data, based on the Seasonal Auto-Regressive Integrated Moving Average (SARIMA) and the NeuroFuzzyLocal Linear Wavelet Neural Network (LLWNN). Although a series of complex challenges create difficulties in refining the model, the proposed algorithm significantly narrows the gap between predictions and actual prices. The ability to predict the dynamics of the price of electricity on the spot market is an important asset for both suppliers and consumers, with a view on prophylactic calibration of supply-demand ratios. The model can be extended and applied to any energy market with a stable structure.
format Article
id doaj-art-792abc0e4a884a08875de9564b476da0
institution OA Journals
issn 1582-9146
2247-9104
language English
publishDate 2023-05-01
publisher Editura ASE
record_format Article
series Amfiteatru Economic
spelling doaj-art-792abc0e4a884a08875de9564b476da02025-08-20T01:57:44ZengEditura ASEAmfiteatru Economic1582-91462247-91042023-05-012563463 47810.24818/EA/2023/63/463 Hybridising Neurofuzzy Model the Seasonal Autoregressive Models for Electricity Price Forecasting on Germany’s Spot MarketDorel Mihai Paraschiv0https://orcid.org/0000-0002-4559-3466Narciz Bălășoiu1https://orcid.org/0000-0002-8531-891XSouhir Ben-Amor 2https://orcid.org/0000-0003-2697-9942Raul Cristian3https://orcid.org/0000-0003-3442-9342Bucharest University of Economic Studies, Bucharest, RomaniaBucharest University of Economic Studies, Bucharest, RomaniaHumboldt University, Berlin, GermanyHumboldt University, Berlin, GermanyElectricity price forecasting has become an area of increasing relevance in recent years. Despite the growing interest in predictive algorithms, the challenges are difficult to overcome given the restricted access to relevant data series and the lack of accurate metrics. Multiple models have been developed and proven to work in the area of EPF. This paper proposes a new univariate hybrid model, trained, and tested on German electricity market data, based on the Seasonal Auto-Regressive Integrated Moving Average (SARIMA) and the NeuroFuzzyLocal Linear Wavelet Neural Network (LLWNN). Although a series of complex challenges create difficulties in refining the model, the proposed algorithm significantly narrows the gap between predictions and actual prices. The ability to predict the dynamics of the price of electricity on the spot market is an important asset for both suppliers and consumers, with a view on prophylactic calibration of supply-demand ratios. The model can be extended and applied to any energy market with a stable structure.https://www.amfiteatrueconomic.ro/temp/Article_3208.pdfelectricity price forecastingseasonal auto-regressive integrated moving average (sarima)neurofuzzy-local linear wavelet neural network (llwnn)univariate hybrid modelgerman electricity market
spellingShingle Dorel Mihai Paraschiv
Narciz Bălășoiu
Souhir Ben-Amor
Raul Cristian
Hybridising Neurofuzzy Model the Seasonal Autoregressive Models for Electricity Price Forecasting on Germany’s Spot Market
Amfiteatru Economic
electricity price forecasting
seasonal auto-regressive integrated moving average (sarima)
neurofuzzy-local linear wavelet neural network (llwnn)
univariate hybrid model
german electricity market
title Hybridising Neurofuzzy Model the Seasonal Autoregressive Models for Electricity Price Forecasting on Germany’s Spot Market
title_full Hybridising Neurofuzzy Model the Seasonal Autoregressive Models for Electricity Price Forecasting on Germany’s Spot Market
title_fullStr Hybridising Neurofuzzy Model the Seasonal Autoregressive Models for Electricity Price Forecasting on Germany’s Spot Market
title_full_unstemmed Hybridising Neurofuzzy Model the Seasonal Autoregressive Models for Electricity Price Forecasting on Germany’s Spot Market
title_short Hybridising Neurofuzzy Model the Seasonal Autoregressive Models for Electricity Price Forecasting on Germany’s Spot Market
title_sort hybridising neurofuzzy model the seasonal autoregressive models for electricity price forecasting on germany s spot market
topic electricity price forecasting
seasonal auto-regressive integrated moving average (sarima)
neurofuzzy-local linear wavelet neural network (llwnn)
univariate hybrid model
german electricity market
url https://www.amfiteatrueconomic.ro/temp/Article_3208.pdf
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AT souhirbenamor hybridisingneurofuzzymodeltheseasonalautoregressivemodelsforelectricitypriceforecastingongermanysspotmarket
AT raulcristian hybridisingneurofuzzymodeltheseasonalautoregressivemodelsforelectricitypriceforecastingongermanysspotmarket