Jul 22, 2021
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Service categories
Service Lines
Artificial Intelligence
Software Development
Domain focus
Energy & Utilities
Other
Programming language
Python
R
Challenge
A leading Italian utility wanted to improve its power load forecasting models, just one year old. For utilities, load forecasting is key for market trading and portfolio management.
The problem statement was quite standard: given 3 years of historical data and 2 years of weather forecasts, provide 1 to 4 day-ahead predictions of hourly power load.
Still, there were two main challenges. First, residential and industrial customers in each market region had to be considered separately. Second, data got available with a 2-month delay. Therefore, standard short-term forecasting techniques were not applicable.
A leading Italian utility wanted to improve its power load forecasting models, just one year old. For utilities, load forecasting is key for market trading and portfolio management.
The problem statement was quite standard: given 3 years of historical data and 2 years of weather forecasts, provide 1 to 4 day-ahead predictions of hourly power load.
Still, there were two main challenges. First, residential and industrial customers in each market region had to be considered separately. Second, data got available with a 2-month delay. Therefore, standard short-term forecasting techniques were not applicable.
Solution
We started by performing an in-depth analysis of the business problem, in order to assess constraints and establish evaluation metrics. Then, we extracted data-driven insights with a thorough explorative analysis.
In building the models, we tried and compared different approaches from statistical learning and deep learning. We mutuated some ideas from the academic literature, yet we had to come up with original solutions to account for the delays in data availability.
Attention was devoted to feature engineering, in particular in modelling the relationship between power load and temperature. The final solution was implemented with a Python Luigi pipeline and deployed on-premises.
We started by performing an in-depth analysis of the business problem, in order to assess constraints and establish evaluation metrics. Then, we extracted data-driven insights with a thorough explorative analysis.
In building the models, we tried and compared different approaches from statistical learning and deep learning. We mutuated some ideas from the academic literature, yet we had to come up with original solutions to account for the delays in data availability.
Attention was devoted to feature engineering, in particular in modelling the relationship between power load and temperature. The final solution was implemented with a Python Luigi pipeline and deployed on-premises.
Results
Our models resulted in a decrease of the relative error - a proxy for the financial losses due to inaccurate predictions - by 24% for residential customers and 26% for industrial ones.
Early prototypes of the models were adopted before the final production deployment due to their superiority with respect to the legacy system.
The final Luigi pipeline was integrated into the IT platform of the utility and became the official load forecasting tool.
Our models resulted in a decrease of the relative error - a proxy for the financial losses due to inaccurate predictions - by 24% for residential customers and 26% for industrial ones.
Early prototypes of the models were adopted before the final production deployment due to their superiority with respect to the legacy system.
The final Luigi pipeline was integrated into the IT platform of the utility and became the official load forecasting tool.
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