On application of state dependent parameter models in electrical demand forecast

Privatization and deregulation of power system industries in many countries (i.e. UK, Japan, USA, Australia, etc.) in recent years have lead to the rise of competitive energy markets. This turns electricity into a commodity and trading article which can be sold and bought at market prices. Nevertheless, unlike other commodities, electricity can not be stored; and its transmission is limited by physical and reliability constraints. As a result, in order to effectively manage and plan the production for economical electricity utilities as well as to gain competitiveness in the market, an accurate forecast of future demands at regular time intervals 1 is of great importance for the management and planning of power production, operation and distribution as well as customer services.