Electricity market clearing price forecasting in a deregulated electricity market

This paper presents a mid-term electricity market clearing price forecasting technique utilizing neural network approach. Forecasting of mid-term market clearing price is essential for decision making, scheduling and bidding strategy planning purposes. However, forecasting mid-term electricity market clearing price is a very complex non-linear problem. Neural network based approaches can be effective forecasting tools in an environment with high degree of non-linearity and uncertainty. Two new artificial neural networks have been proposed and reported in this paper that can be utilized to forecast mid-term daily peak and mid-term hourly electricity market clearing price. Two situations have been considered; market clearing price forecasting under real deregulated electric market and under deregulated electric market with perfect competition. The PJM interconnected system has been utilized for numerical results.