Is a very integral part to manage the revenue that is being generated by supplying electricity. For dynamic pricing to work efficiently it is important that the demand is being forecast properly. This will allow the price to be decided on Valentine so that the customers can be informed about the variation in cost beforehand. All concerned parties need foolproof forecasting to ensure satisfaction and continue trust in this method. Various researchers have been constructed on demand and price forecasting as well, mainly in the electricity sector.

Price forecasting

If the Roanoke Electricity Plans forecast is done properly then the customers will be able to plan their consumption in advance. The serviceProviders will also be able to fix the energy rate in advance and they will also be able to promptly inform the consumers beforehand. A forecasting model was developed in 2002. However, in 2003 various errors were found in the previous method.  In the year 2006, another model was developed to forecast the hourly prices.

It was significantly accurate and it collected data from available market information but the only downside was that it was not able to predict unusually high or low energy rates. Improvement was achieved by using the artificial neural network computing technique. It was based on the similar day approach. What they do is that they also consider other factors like time, demand, and previous price patterns. All these factors have also been shown to affect the price forecast. With gradual improvement in the methods and technologies the market usefulness of this method was finally established by the year 2013.

Demand forecasting

Is there demand forecasting appropriately then suppliers can properly plan their energy supply and generating capacities. It is possible to forecast demand daily, weekly, monthly and even annually. The short-term forecasts are required to control and schedule the power systems dairy from forecasts of several minutes to several hours ahead of demand changes.

The long-term forecasts are required to plan the investment overhauls and to maintain schedules. In 2006, 6 methods of forecasting were compared. They were mainly for forecasting short term demand. It was found out that the ones that were simpler and more robust had better accuracy and they outperformed comparatively more complex methods. So, exponential smoothing method was able to outperform neural networks, double seasonal experimental smoothening and principal component analysis.

In 2006 weather influences were incorporated in the medium term electricity devil forecast methods they could forecast 4 to 12 months in advance. Various factors like relative humidity and temperature are included. It was so because these factors also tend to influence the demand for electricity. All this was used in an auto-regressive model.  It was all done to establish the correlation between energy demands during seasonal variation.

Where are the weather electricity demand forecasting models of the study throughout the year to find which of them are most accurate and are more cost effective and unreliable? Various models like trigonometric remodel, trigonometric residual modification technique, dynamic regression models, ARIMA model,  and various others have been studied extensively and have been researched to find out which works the best for specific demands. different methods were found to be more useful and accurate and reliable for different needs be it to forecast hourly variations monthly variations or annual variations.