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Model development of Time dynamic Markov chain to forecast Solar energy production / Modellutveckling av tidsdynamisk Markovkedja, för solenergiprognoserBengtsson, Angelica January 2023 (has links)
This study attempts to improve forecasts of solar energy production (SEP), so that energy trading companies can propose more accurate bids to Nord Pool. The aim ismake solar energy a more lucrative business, and therefore lead to more investments in this green energy form. The model that is introduced is a hidden Markov model (HMM) that we call a Time-dynamic Markov-chain (TDMC). The TDMC is presented in general, but applied to the energy sector SE4 in south of Sweden. A simple linear regression model is used to compare with the performance of the TDMC model. Regarding the mean absolute error (MAE) and the root-mean-square error (RMSE), the TDMC model outperforms a simple linear regression; both when the training data is relatively fresh and also when the training data has not been updated in over 300 days. A paired t-test also shows a non-significant deviation from the true SEP per day, at the 0.05 significance level, when simulating the first two months of 2023 with the TDMC model. The simple linear regression model, however, shows a significant difference from reality, in comparison.
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