Using GM (1,1) Optimized by MFO with Rolling Mechanism to Forecast the Electricity Consumption of Inner Mongolia

Abstract: Accurate and reliable forecasting on annual electricity consumption will be valuable for social projectors and power grid operators. With the acceleration of electricity market reformation and the development of smart grid and the energy Internet, the modern electric power system is becoming increasingly complex in terms of structure and function. Therefore, electricity consumption forecasting has become a more difficult and challenging task. In this paper, a new hybrid electricity consumption forecasting method, namely grey model (1,1) (GM (1,1)), optimized by moth-flame optimization (MFO) algorithm with rolling mechanism (Rolling-MFO-GM (1,1)), was put forward. The parameters a and b of GM (1,1) were optimized by employing moth-flame optimization algorithm (MFO), which is the latest natured-inspired meta-heuristic algorithm proposed in 2015. Furthermore, the rolling mechanism was also introduced to improve the precision of prediction. The Inner Mongolia case discussion shows the superiority of proposed Rolling-MFO-GM (1,1) for annual electricity consumption prediction when compared with least square regression (LSR), GM (1,1), FOA (fruit fly optimization)-GM (1,1), MFO-GM (1,1), Rolling-LSR, Rolling-GM (1,1) and Rolling-FOA-GM (1,1). The grey forecasting model optimized by MFO with rolling mechanism can improve the forecasting performance of annual electricity consumption significantly.