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From point forecasts to multivariate probabilistic forecasts: The Schaake shuffle for day-ahead electricity price forecasting

Oliver Grothe, Fabian Kächele, Fabian Krüger

arXiv 21 Apr 2022 · Econometrics · publishedEnergy Economics (2023) · 37 citations (OpenAlex)

arXiv:2204.10154 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Modeling price risks is crucial for economic decision making in energy markets. Besides the risk of a single price, the dependence structure of multiple prices is often relevant. We therefore propose a generic and easy-to-implement method for creating multivariate probabilistic forecasts based on univariate point forecasts of day-ahead electricity prices. While each univariate point forecast refers to one of the day's 24 hours, the multivariate forecast distribution models dependencies across hours. The proposed method is based on simple copula techniques and an optional time series component. We illustrate the method for five benchmark data sets recently provided by Lago et al. (2020). Furthermore, we demonstrate an example for constructing realistic prediction intervals for the weighted sum of consecutive electricity prices, as, e.g., needed for pricing individual load profiles.

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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
1Lago, J., Marcjasz, G., Schutter, B.D., Weron, R (2020) Forecasting day-ahead electricity prices: A review of state-of-the-art algorithms, best practices and an open-access benchmark1.000125100%
2Clark, M., Gangopadhyay, S., Hay, L., Rajagopalan, B., Wilby, R (2004) The schaake shuffle: A method for reconstructing space–time variability in forecasted precipitation and temperature fields0.81142100%
3Schefzik, R., Thorarinsdottir, T.L., Gneiting, T (2013) Uncertainty quantification in complex simulation models using ensemble copula coupling0.81142100%
4Bundesverband der Energie- und Wasserwirtschaft e.V (2021) Standardlastprofile strom0.64422100%
5Maciejowska, K., Nitka, W., Weron, T (2021) Enhancing load, wind and solar generation for day-ahead forecasting of electricity prices0.64422100%
6Diebold, F.X., Mariano, R.S (1995) Comparing predictive accuracy0.5112250%
7Thorarinsdottir, T.L., Scheuerer, M., Heinz, C (2016) Assessing the calibration of high-dimensional ensemble forecasts using rank histograms0.5112250%
8Chai, S., Xu, Z., Jia, Y (2019) Conditional density forecast of electricity price based on ensemble elm and logistic emos0.40511100%
9Toubeau, J.F., Bottieau, J., Vallée, F., De Grève, Z (2019) Deep learning-based multivariate probabilistic forecasting for short-term scheduling in power markets0.40511100%
10Hubicka, K., Marcjasz, G., Weron, R (2019) A note on averaging day-ahead electricity price forecasts across calibration windows0.40511100%

Showing the top 10 of 42 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
1Score-based calibration testing for multivariate forecast distributions0.40511
2A hybrid model for day-ahead electricity price forecasting: Combining fundamental and stochastic modelling0.40511
3Density forecast transformations0.40511
4Online Multivariate Regularized Distributional Regression for High-dimensional Probabilistic Electricity Price Forecasting0.40511