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lhiekkan / BuildingAI

BuildingAI cource repo
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Should prices be in the model? #1

Open jesundma opened 4 years ago

jesundma commented 4 years ago

I am not familiar with electricity markets but if they are semi-strong efficient (= all know information is in the prices) then market prices will reflect already all other inputs to the model. In my opinion you should make a clear distinction: either forecast prices based on your inputs or take prices and other inputs and figure out why their is discrepancy (which indicates that market might not be efficient as there is information not priced in). Your model is not modeling things above (ie. prices) but production planning and decisions. Just be careful that you do not introduce model variables, in which other variables are already compounded. Interesting model I would say.

lhiekkan commented 4 years ago

Thanks for your comment! Intraday prices were considered and are essential. In readme there was a line: Intraday electricity market trades and offers are also constantly living