New method stabilizes electricity price forecasting, revolutionizing market risk management.
The HIRA model is a new method for predicting electricity prices in power markets. It combines statistical analysis with neural networks to forecast prices accurately. By identifying key factors affecting prices and using historical data, the model can adapt to different market conditions. The researchers tested the model using data from the Hungarian Power Exchange and found that it can predict prices effectively, regardless of market volatility. This means it can help utilities, producers, and traders manage price risks in real-time market situations.