Electricity (energy commodity) is traded on the wholesale market. Suppliers (electricity generators) and demanders (retailers) are active on the wholesale electricity market. They meet on the power exchange. Electricity generators disclose the amount of power they are willing to sell for a given price and demanders disclose the amount of power they are prepared to buy for a given price. As electricity cannot be stored economically, the electricity market has a highly volatile character. That is why electricity price forecasting has to be based on reliable models that take into account all major factors affecting the price.
During this event we’ll cover
- Short-term forecasting generally involves horizon from a few minutes up to a few days ahead and is of prime importance in day-to-day market operations.
- Medium-term forecasting, from a few days to a few months ahead, is generally preferred for balance sheet calculations, risk management and derivatives pricing.
- Long-term forecasting, with lead times measures in months, quarters or years, concentrates on investment profitability analysis and planning.