A Predictive Fuzzy Logic Model for Forecasting Electricity Day-Ahead Market Prices for Scheduling Industrial Applications

Konstantinos Plakas (), Ioannis Karampinis, Panayiotis Alefragis, Alexios Birbas, Michael Birbas and Alex Papalexopoulos
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Konstantinos Plakas: Electrical and Computer Engineering Department, University of Patras, 26504 Patras, Greece
Ioannis Karampinis: Electrical and Computer Engineering Department, University of Patras, 26504 Patras, Greece
Panayiotis Alefragis: Electrical and Computer Engineering Department, University of Peloponnese, 26334 Patras, Greece
Alexios Birbas: Electrical and Computer Engineering Department, University of Patras, 26504 Patras, Greece
Michael Birbas: Electrical and Computer Engineering Department, University of Patras, 26504 Patras, Greece
Alex Papalexopoulos: Ecco International Inc., San Francisco, CA 94104, USA

Energies, 2023, vol. 16, issue 10, 1-21

Abstract: Electricity price forecasting (EPF) has become an essential part of decision-making for energy companies to participate in power markets. As the energy mix becomes more uncertain and stochastic, this process has also become important for industrial companies, as their production schedules are greatly impacted by energy costs. Although various approaches have been tested with varying degrees of success, this study focuses on predicting day-ahead market (DAM) prices in different European markets and how this directly affects the optimal production scheduling for various industrial loads. We propose a fuzzy-based architecture that incorporates the results of two forecasting algorithms; a random forest (RF) and a long short-term memory (LSTM). To enhance the accuracy of the proposed model for a specific country, electricity market data from neighboring countries are also included. The developed DAM price forecaster can then be utilized by energy-intensive industries to optimize their production processes to reduce energy costs and improve energy-efficiency. Specifically, the tool is important for industries with multi-site production facilities in neighboring countries, which could reschedule the production processes depending on the forecasted electricity market price.

Keywords: electricity markets; day-ahead price forecasting; random forest; long short-term memory; fuzzy architecture; energy efficiency; scheduling applications (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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