Intelligent Optimized Combined Model Based on GARCH and SVM for Forecasting Electricity Price of New South Wales, Australia

Daily electricity price forecasting plays an essential role in electrical power system operation and planning. The accuracy of forecasting electricity price can ensure that consumers minimize their electricity costs and make producers maximize their profits and avoid volatility. However, the fluctua...

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Main Authors: Yi Yang, Yao Dong, Yanhua Chen, Caihong Li
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:Abstract and Applied Analysis
Online Access:http://dx.doi.org/10.1155/2014/504064
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author Yi Yang
Yao Dong
Yanhua Chen
Caihong Li
author_facet Yi Yang
Yao Dong
Yanhua Chen
Caihong Li
author_sort Yi Yang
collection DOAJ
description Daily electricity price forecasting plays an essential role in electrical power system operation and planning. The accuracy of forecasting electricity price can ensure that consumers minimize their electricity costs and make producers maximize their profits and avoid volatility. However, the fluctuation of electricity price depends on other commodities and there is a very complicated randomization in its evolution process. Therefore, in recent years, although large number of forecasting methods have been proposed and researched in this domain, it is very difficult to forecast electricity price with only one traditional model for different behaviors of electricity price. In this paper, we propose an optimized combined forecasting model by ant colony optimization algorithm (ACO) based on the generalized autoregressive conditional heteroskedasticity (GARCH) model and support vector machine (SVM) to improve the forecasting accuracy. First, both GARCH model and SVM are developed to forecast short-term electricity price of New South Wales in Australia. Then, ACO algorithm is applied to determine the weight coefficients. Finally, the forecasting errors by three models are analyzed and compared. The experiment results demonstrate that the combined model makes accuracy higher than the single models.
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spelling doaj-art-eeed3cebad6a4ef79bed550affd9ea172025-08-20T02:22:24ZengWileyAbstract and Applied Analysis1085-33751687-04092014-01-01201410.1155/2014/504064504064Intelligent Optimized Combined Model Based on GARCH and SVM for Forecasting Electricity Price of New South Wales, AustraliaYi Yang0Yao Dong1Yanhua Chen2Caihong Li3School of Information Science and Engineering, Lanzhou University, Lanzhou 730000, ChinaSchool of Mathematics and Statistics, Lanzhou University, Lanzhou 730000, ChinaSchool of Information Science and Engineering, Lanzhou University, Lanzhou 730000, ChinaSchool of Information Science and Engineering, Lanzhou University, Lanzhou 730000, ChinaDaily electricity price forecasting plays an essential role in electrical power system operation and planning. The accuracy of forecasting electricity price can ensure that consumers minimize their electricity costs and make producers maximize their profits and avoid volatility. However, the fluctuation of electricity price depends on other commodities and there is a very complicated randomization in its evolution process. Therefore, in recent years, although large number of forecasting methods have been proposed and researched in this domain, it is very difficult to forecast electricity price with only one traditional model for different behaviors of electricity price. In this paper, we propose an optimized combined forecasting model by ant colony optimization algorithm (ACO) based on the generalized autoregressive conditional heteroskedasticity (GARCH) model and support vector machine (SVM) to improve the forecasting accuracy. First, both GARCH model and SVM are developed to forecast short-term electricity price of New South Wales in Australia. Then, ACO algorithm is applied to determine the weight coefficients. Finally, the forecasting errors by three models are analyzed and compared. The experiment results demonstrate that the combined model makes accuracy higher than the single models.http://dx.doi.org/10.1155/2014/504064
spellingShingle Yi Yang
Yao Dong
Yanhua Chen
Caihong Li
Intelligent Optimized Combined Model Based on GARCH and SVM for Forecasting Electricity Price of New South Wales, Australia
Abstract and Applied Analysis
title Intelligent Optimized Combined Model Based on GARCH and SVM for Forecasting Electricity Price of New South Wales, Australia
title_full Intelligent Optimized Combined Model Based on GARCH and SVM for Forecasting Electricity Price of New South Wales, Australia
title_fullStr Intelligent Optimized Combined Model Based on GARCH and SVM for Forecasting Electricity Price of New South Wales, Australia
title_full_unstemmed Intelligent Optimized Combined Model Based on GARCH and SVM for Forecasting Electricity Price of New South Wales, Australia
title_short Intelligent Optimized Combined Model Based on GARCH and SVM for Forecasting Electricity Price of New South Wales, Australia
title_sort intelligent optimized combined model based on garch and svm for forecasting electricity price of new south wales australia
url http://dx.doi.org/10.1155/2014/504064
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