A novel kernel ridge grey system model with generalized Morlet wavelet and its application in forecasting natural gas production and consumption

Abstract

Natural gas production (NGP) and consumption (NGC) always exhibit high nonlinearity, posing challenges for accurate small-sample forecasting. In this work, a novel kernel ridge grey system model with an extended parametric Morlet wavelet (GMW-KRGM) is proposed by integrating the kernel ridge regularization and grey system modelling within a partially linear regression framework and trained by the conjugate gradient method to mitigate the ill-posed problem. Besides, a weighted multi-objective optimization strategy is designed for model hyperparameter optimization and solved by the grey wolf optimizer (GWO). Six real-world NGP and NGC forecasting cases are carried out and empirical results demonstrate that the proposed GMW-KRGM model with optimal hyperparameters solved by GWO always yields superior forecasting performance than the other 2 machine learning models and 7 conventional grey system benchmarks with out-of-sample mean average percentage error (MAPE) improved in 7.4245%–91.8392% and 14.7303%–42.67% on average, respectively and yields more precise forecasting accuracy with fast and stable convergence than the other 5 optimization algorithms with improved MAPE range from 9.5608% to 48.2584%, indicating that the proposed model holds the capability to effectively deal with the nonlinear complex system and has great potential in nonlinear small sample forecasting.