Hybrid VAR–XGBoost Modeling for Data-Driven Forecasting of Electricity Tariffs in Energy Systems Under Macroeconomic Uncertainty

Electricity tariffs in emerging economies are often influenced by macroeconomic volatility and regulatory design, affecting both affordability and system stability. Understanding these interactions is crucial for anticipating price fluctuations and ensuring sustainable energy policy. This paper examines the influence of macroeconomic conditions on electricity tariff dynamics in Colombia by integrating econometric and machine learning approaches. Using monthly data from 2009 to 2024 and a set of 153 macroeconomic indicators condensed via principal component analysis (PCA), we assess the predictive performance of vector autoregressive (VAR), SARIMAX, and XGBoost models, as well as a hybrid VAR–XGBoost specification. Impulse-response analysis reveals that tariff components exhibit limited sensitivity to macroeconomic shocks, underscoring the buffering role of regulation and sector-specific drivers. However, forecasting exercises demonstrate that accuracy is highly component-specific: SARIMAX performs best for transmission and restrictions, and VAR dominates for distribution and losses, while the hybrid model outperforms for generation and commercialization. These findings highlight that although macroeconomic pass-through into tariffs is weak, hybrid approaches that combine structural econometric dynamics with nonlinear learning can deliver tangible forecasting gains. The study contributes to the literature on electricity pricing in emerging economies and offers practical insights for regulators and policymakers concerned with tariff predictability and energy affordability.

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Publication Details

Journal
Technologies
Published
2025-10-30
DOI
https://doi.org/10.3390/technologies13110495
Primary Topic
Energy Load and Power Forecasting
Type
article
Field-Weighted Citation Impact
0.00

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article

Hybrid VAR–XGBoost Modeling for Data-Driven Forecasting of Electricity Tariffs in Energy Systems Under Macroeconomic Uncertainty

Orlando Joaqui-Barandica, Oscar Walduin Orozco-Cerón, Sebastián López-Estrada
Technologies
Energy Load and Power Forecasting
article

Hybrid VAR–XGBoost Modeling for Data-Driven Forecasting of Electricity Tariffs in Energy Systems Under Macroeconomic Uncertainty

Orlando Joaqui-Barandica, Oscar Walduin Orozco-Cerón, Sebastián López-Estrada
article en

Abstract

Electricity tariffs in emerging economies are often influenced by macroeconomic volatility and regulatory design, affecting both affordability and system stability. Understanding these interactions is crucial for anticipating price fluctuations and ensuring sustainable energy policy. This paper examines the influence of macroeconomic conditions on electricity tariff dynamics in Colombia by integrating econometric and machine learning approaches. Using monthly data from 2009 to 2024 and a set of 153 macroeconomic indicators condensed via principal component analysis (PCA), we assess the predictive performance of vector autoregressive (VAR), SARIMAX, and XGBoost models, as well as a hybrid VAR–XGBoost specification. Impulse-response analysis reveals that tariff components exhibit limited sensitivity to macroeconomic shocks, underscoring the buffering role of regulation and sector-specific drivers. However, forecasting exercises demonstrate that accuracy is highly component-specific: SARIMAX performs best for transmission and restrictions, and VAR dominates for distribution and losses, while the hybrid model outperforms for generation and commercialization. These findings highlight that although macroeconomic pass-through into tariffs is weak, hybrid approaches that combine structural econometric dynamics with nonlinear learning can deliver tangible forecasting gains. The study contributes to the literature on electricity pricing in emerging economies and offers practical insights for regulators and policymakers concerned with tariff predictability and energy affordability.

TechnologiesVol. 13(11)
Pontificia Universidad Javeriana (CO), Universidad del Valle (CO)
Pontificia Universidad Javeriana
Openalex Percentile: Top 69%
Energy Load and Power Forecasting
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