Seasonality in deep learning forecasts of electricity imbalance prices

A-Tier
Journal: Energy Economics
Year: 2024
Volume: 137
Issue: C

Authors (5)

Deng, Sinan (not in RePEc) Inekwe, John (not in RePEc) Smirnov, Vladimir (University of Sydney) Wait, Andrew (not in RePEc) Wang, Chao (not in RePEc)

Score contribution per author:

0.804 = (α=2.01 / 5 authors) × 2.0x A-tier

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

Abstract

In this paper, we propose a seasonal attention mechanism, the effectiveness of which is evaluated via the Bidirectional Long Short-Term Memory (BiLSTM) model. We compare its performance with alternative deep learning and machine learning models in forecasting the balancing settlement prices in the electricity market of Great Britain. Critically, the Seasonal Attention-Based BiLSTM framework provides a superior forecast of extreme prices with an out-of-sample gain in the predictability of 11%–15% compared with models in the literature. Our forecasting techniques could aid both market participants, to better manage their risk and assign their assets, and policy makers, to operate the system at lower cost.

Technical Details

RePEc Handle
repec:eee:eneeco:v:137:y:2024:i:c:s014098832400478x
Journal Field
Energy
Author Count
5
Added to Database
2026-01-29