The GM(1,2) short-term spot price forecasting grey model

In power market,it is important for market participants to accurately forecast the electricity price.This paper tests the performance of GM(1,2) model on spot price forecasting.The GM(1,2) model is improved to forecast the spot price.The factors of load or the price an hour before forecasted time are introduced in the forecasting model.The equal-dimension and new-information method is also used in this model.It has been used to forecast the LMP at low load period,medium load period and peak load period in American PJM power market.The results show that the improved GM(1,2) model with the price an hour before forecasted time work reasonably well.