A Comparative Study of Machine Learning Algorithms for Electricity Price Forecasting with LIME-Based Interpretability

Fuente: arXiv
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Auteurs principaux: Zhao, Xuanyi, Ding, Jiawen, Huang, Xueting, Zhang, Yibo
Format: Preprint
Publié: 2025
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author Zhao, Xuanyi
Ding, Jiawen
Huang, Xueting
Zhang, Yibo
author_facet Zhao, Xuanyi
Ding, Jiawen
Huang, Xueting
Zhang, Yibo
contents With the rapid development of electricity markets, price volatility has significantly increased, making accurate forecasting crucial for power system operations and market decisions. Traditional linear models cannot capture the complex nonlinear characteristics of electricity pricing, necessitating advanced machine learning approaches. This study compares eight machine learning models using Spanish electricity market data, integrating consumption, generation, and meteorological variables. The models evaluated include linear regression, ridge regression, decision tree, KNN, random forest, gradient boosting, SVR, and XGBoost. Results show that KNN achieves the best performance with R^2 of 0.865, MAE of 3.556, and RMSE of 5.240. To enhance interpretability, LIME analysis reveals that meteorological factors and supply-demand indicators significantly influence price fluctuations through nonlinear relationships. This work demonstrates the effectiveness of machine learning models in electricity price forecasting while improving decision transparency through interpretability analysis.
format Preprint
id arxiv_https___arxiv_org_abs_2512_01212
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle A Comparative Study of Machine Learning Algorithms for Electricity Price Forecasting with LIME-Based Interpretability
Zhao, Xuanyi
Ding, Jiawen
Huang, Xueting
Zhang, Yibo
Machine Learning
With the rapid development of electricity markets, price volatility has significantly increased, making accurate forecasting crucial for power system operations and market decisions. Traditional linear models cannot capture the complex nonlinear characteristics of electricity pricing, necessitating advanced machine learning approaches. This study compares eight machine learning models using Spanish electricity market data, integrating consumption, generation, and meteorological variables. The models evaluated include linear regression, ridge regression, decision tree, KNN, random forest, gradient boosting, SVR, and XGBoost. Results show that KNN achieves the best performance with R^2 of 0.865, MAE of 3.556, and RMSE of 5.240. To enhance interpretability, LIME analysis reveals that meteorological factors and supply-demand indicators significantly influence price fluctuations through nonlinear relationships. This work demonstrates the effectiveness of machine learning models in electricity price forecasting while improving decision transparency through interpretability analysis.
title A Comparative Study of Machine Learning Algorithms for Electricity Price Forecasting with LIME-Based Interpretability
topic Machine Learning
url https://arxiv.org/abs/2512.01212