Electricity price analysis and forecasting in Finland

Abstract

The objective aims to analyze factors behind the increase in electricity prices, particularly those related to materials, weather, and government policies, and to determine how these factors contribute to the overall price of electricity. Using electricity price data, the project seeks to provide insights into the current volatility of electricity prices and develop counter plans to address rising prices. The project aims to enhance knowledge of data analysis methods and automation tools, better understand the current state of electricity price increases in Finland and learn how to visualize data and flows using electricity data. In this research, the author did not focus on predicting electricity prices due to the complexity of several factors involved. However, the author explains how data scientists and analysts can use machine learning and statistical methods to execute the prediction of electricity prices. This report consists of three major parts. The first part will focus on analyzing data from multiple resources to examine the current trend of electricity price increases in Finland and other Nordic countries. This will include examining statistics on electricity generation resources, the composition of electricity prices, import dependency, and the background of price increases in Finland, providing valuable insights into the situation. The second part will propose two solutions for solving current electricity price volatility for normal users. One of the executions is acquiring data statistics by utilizing Microsoft Power Automate Desktop, a business automation tool. The second execution is giving a comparison of electricity spot price and fixed price so that users can determine whether they can take one of the options when they create a contract with electricity providers. Lastly, the projects will provide insights and learning points from the project’s execution, assess the usability of the outcome, and outline a plan for future implementation.