Price forecasting has been at the center of intense studies since the introduction of competition in Electricity industry. Price forecasts are a fundamental input to an energy company's decision making and strategy development. The present approach is an attempt to forecast day-ahead electricity prices using time series of historical data. A combination of Weighted nearest neighborhood and wavelets is used to forecast the next day electricity prices. The methodology is applied to historical data pertaining to California Electricity Market. The performance of the method is discussed with Mean Absolute Percentage Error (MAPE).
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.