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cc-by-nc-nd, (c) Grossi et al., 2018
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/125237

The influence of renewables on electricity price forecasting: a robust approach

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In this paper a robust approach to modelling electricity spot prices is introduced. Differently from what has been recently done in the literature on electricity price forecasting, where the attention has been mainly drawn by the prediction of spikes, the focus of this contribution is on the robust estimation of nonlinear SETARX models (Self-Exciting Threshold Auto Regressive models with eXogenous regressors). In this way, parameters estimates are not, or very lightly, influenced by the presence of extreme observations and the large majority of prices, which are not spikes, could be better forecasted. A Monte Carlo study is carried out in order to select the best weighting function for Generalized M-estimators of SETAR processes. A robust procedure to select and estimate nonlinear processes for electricity prices is introduced, including robust tests for stationarity and nonlinearity and robust information criteria. The application of the procedure to the Italian electricity market reveals the forecasting superiority of the robust GM-estimator based on the polynomial weighting function respect to the non-robust Least Squares estimator. Finally, the introduction of external regressors in the robust estimation of SETARX processes contributes to the improvement of the forecasting ability of the model.

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GROSSI, Luigi, NAN, Fany. The influence of renewables on electricity price forecasting: a robust approach. _IEB Working Paper 2018/10_. [consulta: 24 de gener de 2026]. [Disponible a: https://hdl.handle.net/2445/125237]

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