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

Author

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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)

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.

Suggested Citation

  • Konstantinos Plakas & Ioannis Karampinis & Panayiotis Alefragis & Alexios Birbas & Michael Birbas & Alex Papalexopoulos, 2023. "A Predictive Fuzzy Logic Model for Forecasting Electricity Day-Ahead Market Prices for Scheduling Industrial Applications," Energies, MDPI, vol. 16(10), pages 1-21, May.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:10:p:4085-:d:1146667
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    References listed on IDEAS

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