Trading on short-term path forecasts of intraday electricity prices

A-Tier
Journal: Energy Economics
Year: 2022
Volume: 112
Issue: C

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We introduce a profitable trading strategy that can support decision-making in continuous intraday markets for electricity. It utilizes a novel forecasting framework, which generates prediction bands from a pool of path forecasts or approximates them using probabilistic price forecasts. The prediction bands then define a time-dependent price level that, when exceeded, indicates a good trading opportunity. Results for the German intraday market show that, in terms of the energy score, our path forecasts beat two well performing literature benchmarks by over 30%. Moreover, the forecasts provide empirical evidence that the increased computational burden induced by generating realistic price paths is offset by higher trading profits. Still, the proposed approximate and bootstrap-based methods offer a reasonable trade-off — they do not require generating path forecasts and yield only slightly lower profits.

Technical Details

RePEc Handle
repec:eee:eneeco:v:112:y:2022:i:c:s014098832200281x
Journal Field
Energy
Author Count
3
Added to Database
2026-01-25