Problem
Research questions and friction points this paper is trying to address.
retail electricity price
price volatility
causal graph
temporal convolutional network
forecasting
A causal graph-informed temporal convolution architecture for interpretable retail electricity price forecasting
๐ค AI Summary
็ ็ฉถ้่ฟ็ปๅๅ ๆๅพๅๆถ้ดๅท็งฏ็ฝ็ป็ๆนๆณ๏ผ่งฃๅณไบ้ถๅฎ็ตไปท้ขๆต็ๅ็กฎๆงๅๅฏ่งฃ้ๆง้ฎ้ข๏ผๆ้ซไบๅธๅบๅณ็ญ็ๆๆๆงใ
๐ Abstract
Retail electricity markets in deregulated systems face significant price volatility and complex interactions with forward and futures products, posing challenges for effective operational decision-making. This study introduces a Causal Graph-Informed Temporal Convolutional Network (CG-TCN), a forecasting architecture that integrates a learned causal graph into a temporal convolutional network via a graph-neural embedding to enhance both forecasting accuracy and interpretability of retail electricity price dynamics. It first applies a multi-resolution decomposition to isolate semiannual, quarterly, and monthly trends from high-frequency fluctuations. A causal graph is then discovered over these components and key covariates, including wholesale forward prices and retail contract attributes such as early termination fees, with domain constraints that preserve causal directionality and exogeneity. The learned causal structure is encoded as an adjacency embedding that conditions the TCN's convolutions and attention, aligning representation learning with causal pathways. Using ten years of daily 12-month fixed-price residential contracts from Ohio's deregulated market, we find that wholesale forward prices primarily determine long-term retail price trends, whereas contract attributes influence short-term fluctuations. CG-TCN consistently outperforms benchmark models, achieving mean absolute percentage errors of 3.08%, 3.82%, and 5.43% for one-, ten-, and fifteen-step-ahead forecasts of daily retail electricity median prices, respectively. By combining predictive performance with interpretability, CG-TCN provides transparent, policy-relevant insight to support market analytics, consumer protection, regulatory oversight, risk assessment and procurement planning in competitive electricity markets.
Innovation
Methods, ideas, or system contributions that make the work stand out.
Causal Graph-Informed Temporal Convolutional Network
graph-neural embedding
multi-resolution decomposition
causal structure
๐ Similar Papers
No similar papers found.
