Optimization of Marginal Price Forecasting in Mexico through applying Machine Learning Models

The Local Marginal Price (LMP) represents the value of energy at a specific moment and location, and its proper management is crucial for the development of the country's strategic sectors. This study compares the ADR, RPSG, SARIMA, and LSTM-H models for predicting the LMP, achieving an approximate effectiveness of 88%. By implementing it in 28 nodes of the three interconnection systems (SIN, BCA, and BCS) in Mexico, the results of the enhanced LSTM network analysis are presented through sensitivity analysis and an ensemble with Prophet, yielding the following metrics: MAE: 0.0189, MSE: 0.0101, RMSE: 0.1007, and MAPE: 12.18, at node 05PAR-115 in Hidalgo del Parral, Chihuahua. This model can construct tree diagrams (ADR) that identify the critical variables for predicting the LMP of any node, significantly contributing to the accuracy of predictive analysis models.

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Publication Details

Journal
International Journal of Combinatorial Optimization Problems and Informatics.
Published
2024-11-04
DOI
https://doi.org/10.61467/2007.1558.2024.v15i4.493
Citations
1
Primary Topic
Global Trade and Competitiveness
Type
article
Field-Weighted Citation Impact
0.55
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article

Optimization of Marginal Price Forecasting in Mexico through applying Machine Learning Models

N. Flores, Gustavo Figueroa, Alberto Alfonso Aguilar Lasserre, Marcos Escobar et al.
1 citations
International Journal of Combinatorial Optimization Problems and Informatics.
Global Trade and Competitiveness
0.55
article

Optimization of Marginal Price Forecasting in Mexico through applying Machine Learning Models

N. Flores, Gustavo Figueroa, Alberto Alfonso Aguilar Lasserre, Marcos Escobar, Marco Julio Del Moral Argumedo
article en
1 citations

Abstract

The Local Marginal Price (LMP) represents the value of energy at a specific moment and location, and its proper management is crucial for the development of the country's strategic sectors. This study compares the ADR, RPSG, SARIMA, and LSTM-H models for predicting the LMP, achieving an approximate effectiveness of 88%. By implementing it in 28 nodes of the three interconnection systems (SIN, BCA, and BCS) in Mexico, the results of the enhanced LSTM network analysis are presented through sensitivity analysis and an ensemble with Prophet, yielding the following metrics: MAE: 0.0189, MSE: 0.0101, RMSE: 0.1007, and MAPE: 12.18, at node 05PAR-115 in Hidalgo del Parral, Chihuahua. This model can construct tree diagrams (ADR) that identify the critical variables for predicting the LMP of any node, significantly contributing to the accuracy of predictive analysis models.

International Journal of Combinatorial Optimization Problems and Informatics.Vol. 15(4)
Tecnológico Nacional de México (MX), Instituto Nacional de Electricidad y Energías Limpias (MX), Instituto Tecnologico de Orizaba (MX)
Affordable and clean energy
Openalex Percentile: Top 21%
Global Trade and Competitiveness
0.55
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Optimization of Marginal Price Forecasting in Mexico through applying Machine Learning Models — N. Flores, Gustavo Figueroa, et al. · International Journal of Combinatorial Optimization Problems and Informatics. (2024) | TGRS Research Map | TGRS