Regression Models Meet Foundation Models: A Hybrid-AI Approach to Practical Electricity Price Forecasting

Fuente: arXiv
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Main Authors: Qiu, Yunzhong, Li, Binzhu, Wei, Hao, Weng, Shenglin, Wang, Chen, Pei, Zhongyi, Long, Mingsheng, Wang, Jianmin
Format: Preprint
Published: 2026
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author Qiu, Yunzhong
Li, Binzhu
Wei, Hao
Weng, Shenglin
Wang, Chen
Pei, Zhongyi
Long, Mingsheng
Wang, Jianmin
author_facet Qiu, Yunzhong
Li, Binzhu
Wei, Hao
Weng, Shenglin
Wang, Chen
Pei, Zhongyi
Long, Mingsheng
Wang, Jianmin
contents Electricity market prices exhibit extreme volatility, nonlinearity, and non-stationarity, making accurate forecasting a significant challenge. While cutting-edge time series foundation models (TSFMs) effectively capture temporal dependencies, they typically underutilize cross-variate correlations and non-periodic patterns that are essential for price forecasting. Conversely, regression models excel at capturing feature interactions but are limited to future-available inputs, ignoring crucial historical drivers that are unavailable at forecast time. To bridge this gap, we propose FutureBoosting, a novel paradigm that enhances regression-based forecasts by integrating forecasted features generated from a frozen TSFM. This approach leverages the TSFM's ability to model historical patterns and injects these insights as enriched inputs into a downstream regression model. We instantiate this paradigm into a lightweight, plug-and-play framework for electricity price forecasting. Extensive evaluations on real-world electricity market data demonstrate that our framework consistently outperforms state-of-the-art TSFMs and regression baselines, achieving reductions in Mean Absolute Error (MAE) of more than 30% at most. Through ablation studies and explainable AI (XAI) techniques, we validate the contribution of forecasted features and elucidate the model's decision-making process. FutureBoosting establishes a robust, interpretable, and effective solution for practical market participation, offering a general framework for enhancing regression models with temporal context.
format Preprint
id arxiv_https___arxiv_org_abs_2603_06726
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Regression Models Meet Foundation Models: A Hybrid-AI Approach to Practical Electricity Price Forecasting
Qiu, Yunzhong
Li, Binzhu
Wei, Hao
Weng, Shenglin
Wang, Chen
Pei, Zhongyi
Long, Mingsheng
Wang, Jianmin
Machine Learning
Artificial Intelligence
Electricity market prices exhibit extreme volatility, nonlinearity, and non-stationarity, making accurate forecasting a significant challenge. While cutting-edge time series foundation models (TSFMs) effectively capture temporal dependencies, they typically underutilize cross-variate correlations and non-periodic patterns that are essential for price forecasting. Conversely, regression models excel at capturing feature interactions but are limited to future-available inputs, ignoring crucial historical drivers that are unavailable at forecast time. To bridge this gap, we propose FutureBoosting, a novel paradigm that enhances regression-based forecasts by integrating forecasted features generated from a frozen TSFM. This approach leverages the TSFM's ability to model historical patterns and injects these insights as enriched inputs into a downstream regression model. We instantiate this paradigm into a lightweight, plug-and-play framework for electricity price forecasting. Extensive evaluations on real-world electricity market data demonstrate that our framework consistently outperforms state-of-the-art TSFMs and regression baselines, achieving reductions in Mean Absolute Error (MAE) of more than 30% at most. Through ablation studies and explainable AI (XAI) techniques, we validate the contribution of forecasted features and elucidate the model's decision-making process. FutureBoosting establishes a robust, interpretable, and effective solution for practical market participation, offering a general framework for enhancing regression models with temporal context.
title Regression Models Meet Foundation Models: A Hybrid-AI Approach to Practical Electricity Price Forecasting
topic Machine Learning
Artificial Intelligence
url https://arxiv.org/abs/2603.06726