Machine Learning (ML) based Electricity Price Prediction with Visualization

Electricity price prediction is crucial for businesses reliant on heavy machinery or computing services, as it aids in cost management and energy optimization. Accurate predictions allow these businesses to forecast annual electricity expenses, enhancing cost efficiency. This project aims to forecast electricity prices using machine learning techniques, specifically the Random Forest regression algorithm. The project utilizes historical data on electricity consumption and other influencing factors, including date and time, holiday indicators, day of the week, week of the year, forecasted and actual wind production, national load, temperature, wind speed, and CO2 intensity. The methodology involves converting string values to numerical values, handling missing data, and normalizing the dataset, identifying key features that significantly impact electricity prices, Splitting the data into training and testing sets, and training the model using the Random Forest regression algorithm and assessing the model’s performance with appropriate metrics to ensure accuracy and reliability. The results demonstrate that the Random Forest model effectively predicts electricity prices with high accuracy. Visualizing these predictions in Power BI provides intuitive insights into the factors influencing electricity prices. These findings enable businesses to better anticipate electricity expenses, optimize energy usage, and improve financial planning. The comprehensive approach outlined in this project offers a valuable tool for understanding and forecasting electricity prices, thereby enhancing resource management and cost efficiency.