A Comparative Study of Machine Learning Algorithms for Electricity Price Forecasting with LIME-Based Interpretability
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arXiv
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| Auteurs principaux: | , , , |
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| Format: | Preprint |
| Publié: |
2025
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| _version_ | 1866914175896256512 |
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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 |