Review of methodologies used in electricity supply and demand forecasting

Abstract

The electricity market is a critical component of modern society, providing the essential energy needed to power our homes, businesses, and industries. European countries began to liberalize their electricity markets in an effort to increase competition and reduce prices for consumers (Sousa & Soares, 2020). In a liberalized electricity market, electricity is treated as a tradable commodity like any other product. This implies that European electricity markets are subject to the same economic principles of supply and demand as other markets, with prices rising when demand outstrips supply and falling when supply exceeds demand.