A hybrid prediction model based on improved multivariable grey model for long-term electricity consumption

Abstract

The accurate and stable prediction of electricity consumption is essential for intelligent power systems in rapidly developing countries. Grey prediction model is one of choices for prediction under the condition of limited historical data. Nonetheless, it seems rather sceptical using single-variable grey prediction model to predict the dynamics of a complex system. This paper presents a novel multivariable grey prediction model based on first-order linear difference equation for long-term electricity consumption prediction. The proposed model solves the problem of parameter estimation and variable prediction deriving from different approaches through rewriting the whitenization equation of multivariable grey model (MGM(1, m)). To validate the effectiveness of the proposed hybrid model, the electricity consumption is estimated and predicted over the data from Shanxi province and Beijing city in China from 1999 to 2018. The results show that the hybrid model provides a better estimation and prediction performance compared with other prediction model for predicting electricity consumption.