Review of development of spot price forecasting methods in electricity markets

Electric power industry is undergoing a process of innovation from regulation to market operation. Electricity price was no longer determined directly by government, and was formed under condition of market mechanism. The fluctuation of electricity price will affect the profit of market participants. It is very important for market participants to accurately forecast the price. In this paper, the methods of spot price forecasting and their technical development were detailed. The types, forecasting principle, advantages and disadvantages, and the application of price forecasting methods in electricity markets were summarized.