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Comparing the Forecasting Performances of Linear Models for Electricity Prices with High RES Penetration

Angelica Gianfreda, Francesco Ravazzolo, Luca Rossini

arXiv 3 Jan 2018 · Econometrics · publishedInternational Journal of Forecasting (2020) · 51 citations (OpenAlex)

arXiv:1801.01093 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper compares alternative univariate versus multivariate models, frequentist versus Bayesian autoregressive and vector autoregressive specifications, for hourly day-ahead electricity prices, both with and without renewable energy sources. The accuracy of point and density forecasts are inspected in four main European markets (Germany, Denmark, Italy and Spain) characterized by different levels of renewable energy power generation. Our results show that the Bayesian VAR specifications with exogenous variables dominate other multivariate and univariate specifications, in terms of both point and density forecasting.

Citation extraction

50
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Raviv, E., Bouwman, K. E., and van Dijk, D (2015) Forecasting day-ahead electricity prices: Utilizing hourly prices0.84333100%
2Ziel, F. and Weron, R (2018) Day-ahead electricity price forecasting with high-dimensional structures: Univariate vs. multivariate modeling frameworks0.73732100%
3Bunn, D. W., Gianfreda, A., and Kermer, S (2018) A trading-based evaluation of density forecasts in a real-time electricity market self0.64422100%
4Stock and Watson (2002) Forecasting using principal components from a large number of predictors0.64422100%
5Gianfreda, A., Parisio, L., and Pelagatti, M (2018) A review of balancing costs in Italy before and after RES introduction self0.51121100%
6Hirth, L. and Ziegenhagen, I (2015) Balancing power and variable renewables: Three links0.51121100%
7Maciejowska, K. and Weron, R (2015) Forecasting of daily electricity prices with factor models: utilizing intra-day and inter-zone relationships0.51121100%
8Misiorek, A., Trueck, S., and Weron, R (2006) Point and interval forecasting of spot electricity prices: linear vs. non-linear time series models0.51121100%
9Amisano, G. and Giacomini, R (2007) Comparing density forecasts via weighted likelihood ratio tests0.40511100%
10Andrews, D. and Monahan, J (1992) An improved heteroskedasticity and autocorrelation consistent covariance matrix estimator0.40511100%

Showing the top 10 of 50 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Modeling European Electricity Market Integration during turbulent times1.00053
2Are low frequency macroeconomic variables important for high frequency electricity prices?0.92843
3Bayesian Forecasting in Economics and Finance: A Modern Review0.51121
4Proper scoring rules for evaluating asymmetry in density forecasting0.40511
5A Multivariate Dependence Analysis for Electricity Prices, Demand and Renewable Energy Sources0.40511
6Extrapolating the long-term seasonal component of electricity prices for forecasting in the day-ahead market0.40511
72512.165210.40511