Fundamental Multi-Product Price Forecasting in Power Markets

Abstract

This report has been prepared in the first phase of the project 'Pricing Balancing Services in the Future Nordic Power Market1, and its purpose is two-fold. First, a review on expected future trends in European power markets is provided, focusing on the sequences and rules of existing and expected future markets. Second, a literature review on the topic of fundamental price forecasting is given. The focus is on modelling approaches for short-term physical markets, including several markets, such as the dayahead intraday and balancing markets.