A New Approach to Short-term Price Forecast Strategy with an Artificial Neural Network Approach: Application to the Nord Pool

- Journal title : Journal of Electrical Engineering and Technology
- Volume 10, Issue 4, 2015, pp.1480-1491
- Publisher : The Korean Institute of Electrical Engineers
- DOI : 10.5370/JEET.2015.10.4.1480

Title & Authors

A New Approach to Short-term Price Forecast Strategy with an Artificial Neural Network Approach: Application to the Nord Pool

Kim, Mun-Kyeom;

Kim, Mun-Kyeom;

Abstract

In new deregulated electricity market, short-term price forecasting is key information for all market players. A better forecast of market-clearing price (MCP) helps market participants to strategically set up their bidding strategies for energy markets in the short-term. This paper presents a new prediction strategy to improve the need for more accurate short-term price forecasting tool at spot market using an artificial neural networks (ANNs). To build the forecasting ANN model, a three-layered feedforward neural network trained by the improved Levenberg-marquardt (LM) algorithm is used to forecast the locational marginal prices (LMPs). To accurately predict LMPs, actual power generation and load are considered as the input sets, and then the difference is used to predict price differences in the spot market. The proposed ANN model generalizes the relationship between the LMP in each area and the unconstrained MCP during the same period of time. The LMP calculation is iterated so that the capacity between the areas is maximized and the mechanism itself helps to relieve grid congestion. The addition of flow between the areas gives the LMPs a new equilibrium point, which is balanced when taking the transfer capacity into account, LMP forecasting is then possible. The proposed forecasting strategy is tested on the spot market of the Nord Pool. The validity, the efficiency, and effectiveness of the proposed approach are shown by comparing with time-series models

Keywords

Short-term forecasting;Locational marginal price;Artificial neural network;Levenberg-marquardt algorithm;Nord pool;

Language

English

Cited by

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