Forecasting Wind–Photovoltaic Energy Production and Income with Traditional and ML Techniques

Hybrid production plants harness diverse climatic sources for electricity generation, playing a crucial role in the transition to renewable energies. This study aims to forecast the profitability of a combined wind–photovoltaic energy system. Here, we develop a model that integrates predicted spot p...

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Main Authors: Giovanni Masala, Amelie Schischke
Format: Article
Language:English
Published: MDPI AG 2024-11-01
Series:Econometrics
Subjects:
Online Access:https://www.mdpi.com/2225-1146/12/4/34
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author Giovanni Masala
Amelie Schischke
author_facet Giovanni Masala
Amelie Schischke
author_sort Giovanni Masala
collection DOAJ
description Hybrid production plants harness diverse climatic sources for electricity generation, playing a crucial role in the transition to renewable energies. This study aims to forecast the profitability of a combined wind–photovoltaic energy system. Here, we develop a model that integrates predicted spot prices and electricity output forecasts, incorporating relevant climatic variables to enhance accuracy. The jointly modeled climatic variables and the spot price constitute one of the innovative aspects of this work. Regarding practical application, we considered a hypothetical wind–photovoltaic plant located in Italy and used the relevant climate series to determine the quantity of energy produced. We forecast the quantity of energy as well as income through machine learning techniques and more traditional statistical and econometric models. We evaluate the results by splitting the dataset into estimation windows and test windows, and using a backtesting technique. In particular, we found evidence that ML regression techniques outperform results obtained with traditional econometric models. Regarding the models used to achieve this goal, the objective is not to propose original models but to verify the effectiveness of the most recent machine learning models for this important application, and to compare them with more classic linear regression techniques.
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spelling doaj-art-a2afd45bf0a347c38b83716fcdfe54152025-08-20T02:55:56ZengMDPI AGEconometrics2225-11462024-11-011243410.3390/econometrics12040034Forecasting Wind–Photovoltaic Energy Production and Income with Traditional and ML TechniquesGiovanni Masala0Amelie Schischke1Department of Economics and Business Sciences, University of Cagliari, 09123 Cagliari, ItalyInstitute of Materials Resource Management, University of Augsburg, Universitätsstraße 2, 86159 Augsburg, Bavaria, GermanyHybrid production plants harness diverse climatic sources for electricity generation, playing a crucial role in the transition to renewable energies. This study aims to forecast the profitability of a combined wind–photovoltaic energy system. Here, we develop a model that integrates predicted spot prices and electricity output forecasts, incorporating relevant climatic variables to enhance accuracy. The jointly modeled climatic variables and the spot price constitute one of the innovative aspects of this work. Regarding practical application, we considered a hypothetical wind–photovoltaic plant located in Italy and used the relevant climate series to determine the quantity of energy produced. We forecast the quantity of energy as well as income through machine learning techniques and more traditional statistical and econometric models. We evaluate the results by splitting the dataset into estimation windows and test windows, and using a backtesting technique. In particular, we found evidence that ML regression techniques outperform results obtained with traditional econometric models. Regarding the models used to achieve this goal, the objective is not to propose original models but to verify the effectiveness of the most recent machine learning models for this important application, and to compare them with more classic linear regression techniques.https://www.mdpi.com/2225-1146/12/4/34renewable energyelectricity priceincometime series forecastingmachine learning techniquesbacktesting
spellingShingle Giovanni Masala
Amelie Schischke
Forecasting Wind–Photovoltaic Energy Production and Income with Traditional and ML Techniques
Econometrics
renewable energy
electricity price
income
time series forecasting
machine learning techniques
backtesting
title Forecasting Wind–Photovoltaic Energy Production and Income with Traditional and ML Techniques
title_full Forecasting Wind–Photovoltaic Energy Production and Income with Traditional and ML Techniques
title_fullStr Forecasting Wind–Photovoltaic Energy Production and Income with Traditional and ML Techniques
title_full_unstemmed Forecasting Wind–Photovoltaic Energy Production and Income with Traditional and ML Techniques
title_short Forecasting Wind–Photovoltaic Energy Production and Income with Traditional and ML Techniques
title_sort forecasting wind photovoltaic energy production and income with traditional and ml techniques
topic renewable energy
electricity price
income
time series forecasting
machine learning techniques
backtesting
url https://www.mdpi.com/2225-1146/12/4/34
work_keys_str_mv AT giovannimasala forecastingwindphotovoltaicenergyproductionandincomewithtraditionalandmltechniques
AT amelieschischke forecastingwindphotovoltaicenergyproductionandincomewithtraditionalandmltechniques