Price forecasting in deregulated electricity markets - a bibliographical survey

In electricity markets, short-term price forecasting plays a vital role in the daily scheduling of generating assets and the estimation of market competitors´ payoff. The volatility of electricity market and its uncertain behavior in constrained networks could make it cumbersome to forecast the hourly price of electricity based on conventional methods. This paper gives a bibliographical survey, a brief review and general background of different approaches and developments in the field of price forecasting. We provide an overview of published literature on this topic, highlighting common futures and drawing out some important aspects of the methodology used.