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Economic Analysis: Theory and Practice
 

Methods of statistical forecasting of economic indicators: electricity consumption by enterprise

Vol. 14, Iss. 17, MAY 2015

PDF  Article PDF Version

Available online: 10 May 2015

Subject Heading: MATHEMATICAL METHODS AND MODELS

JEL Classification: 

Pages: 43-52

Grigor'eva D.R. Branch of Kazan (Volga) Federal University in Naberezhnye Chelny, Naberezhnye Chelny, Republic of Tatarstan, Russian Federation
d.r.grigoreva@mail.ru

Faizullina A.G. Branch of Kazan (Volga) Federal University in Naberezhnye Chelny, Naberezhnye Chelny, Republic of Tatarstan, Russian Federation
dlya_pisem_t@mail.ru

Subject Consumption by the population and enterprises depends on many factors: temperature, day time, weather conditions. The constant need to supply electricity to households and enterprises generates the need for protection against serious damage. Termination of energy supply to vital objects may cause accidents and lead to huge financial losses; therefore, in most cases it is advisable to spend money on crisis prevention. A possibility to solve this problem is to predict energy consumption. As a rule, experts are aware of the information about potential electricity consumption, and predicting potential damage by an expert will be sufficient. This entails little financial cost and considerable time to collect representative samples. As a rule, the information needed to predict is going to power sensors or utilities. The article discusses the application of the STATISTICA system to forecast energy consumption at enterprises. In addition to risk mitigation, forecasting is another important application. For businesses, the cost of energy bills accounts for a significant budget item. Forecasting enables to apply a more balanced approach to the formation of expenditure items.
     Objectives The main objective of the work is to analyze statistical methods and forecasting of electricity consumption volume at a plant under the method of researching the time series with the help of the STATISTICA package using neural networks. In this paper, we consider the ARIMA model, which represents a whole class of stochastic processes used for time series analysis. In addition, the paper discusses the application of neural networks possibilities in the problem of forecasting. We set the following tasks: to forecast energy consumption under the ARIMA method; to make a forecast of electricity consumption using neural networks; to check the quality of the model for the recent year; to make a forecast for a longer period.
     Methods The paper discusses the theoretical basis of the analysis and forecasting, the basic concepts of time series and their types, the theory of the neural network model. We also used the ARIMA model, the indicators of the analysis of dynamics, and performed a comparative analysis of the dynamics of electricity consumption volume for the period of 2009-2013.
     Results We have made a forecast of a time series under the ARIMA method using the neural networks.
     Discussion Neural networks have many important properties, but the key one is learning capability. Training of neural networks involves, first of all, changing the 'strength' of synaptic connections between neurons. The classification of neural networks in terms of the nature of learning divides them into neural networks using supervised learning and neural networks using unsupervised learning. The supervised learning implies that for each input vector there is a target vector representing the desired output. Together they are called a training pair. Typically, the training of a neural network is based on a certain number of training pairs, where the output vector is presented, the network output is calculated and compared to appropriate target vector. Further, the weight changes in accordance with the algorithm seeking to minimize the error. The vectors of the training set are presented sequentially, then errors are computed and the weights are adjusted for each vector as long as the error for the entire learning array reaches an acceptable level. The unsupervised learning is a much more plausible model of learning in terms of biological roots of artificial neural networks. Teuvo Kohonen and many other scholars developed the model. It does not need a target vector for output and, therefore, does not require any comparison with predetermined ideal responses. The training set only consists of input vectors. The learning algorithm adjusts the network weights so that to achieve agreed output vectors, i.e. the presentation of sufficiently close input vectors would produce the same outputs. The learning process is, therefore, highlights the statistical properties of the training set and groups similar vectors into classes.
     Conclusions and Relevance We conclude that when predicting energy consumption in conditions of limited resources and rising prices, the methods based on the use of neural networks turn out to be the most effective. This method allows detecting patterns of events, hidden levers pushing the studied parameters in either direction. Despite the apparent simplicity, this analysis has a number of nuances, which, if disregarded, lead to serious errors in the interpretation of results.

Keywords: neural networks, forecasting, ARIMA model, econometric method, economic analysis, indicators

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