Panel semiparametric quantile regression neural network for electricity consumption forecasting

Addressing the forecasting issues is one of the core objectives of developing and restructuring of electric power industry in China. However, there are not enough efforts that have been made to develop an accurate electricity consumption forecasting procedure. In this paper, a panel semiparametric quantile regression neural network (PSQRNN) is developed by combining an artificial neural network and semiparametric quantile regression for panel data. By embedding penalized quantile regression with least absolute shrinkage and selection operator (LASSO), ridge regression and backpropagation, PSQRNN keeps the flexibility of nonparametric models and the interpretability of parametric models simultaneously. The prediction accuracy is evaluated based on China's electricity consumption data set, and the results indicate that PSQRNN performs better compared with three benchmark methods including BP neural network (BP), Support Vector Machine (SVM) and Quantile Regression Neural Network (QRNN).

Automated summary

Addressing forecasting issues is a core objective of the electric power industry development in China. The new PSQRNN model combines artificial neural network and semiparametric quantile regression for more accurate electricity consumption predictions, outperforming traditional methods.