Price spike forecasting using concept-tree approach based on cloud model

There are many techniques for electricity market price forecasting. The challenge of spike prediction is the accuracy of the prediction that is on how a classifier can capture all spikes that would happen. In this paper, we introduce a novel data discretization approach using cloud models to implement concept hierarchies and data reduction. An effective framework of predicting the occurrence of spikes has been discussed in details. A concept-tree approach based on cloud model is presented to give a reliable forecast of the occurrence of price spikes with low dimension space and automated concept level. Combined with the spike value prediction techniques, the proposed approach aims at providing a comprehensive tool for price spike forecasting are discussed in detail. Realistic market data are used to test the proposed model with promising results.