Machine Learning with Neural Networks. J. Stuart McMenamin, David Simons, Andy Sukenik Itron, Inc.

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1 Machine Learning with Neural Networks J. Stuart McMenamin, David Simons, Andy Sukenik Itron, Inc.

2 Please Remember» Phones are Muted: In order to help this session run smoothly, your phones are muted.» Full Screen Mode: To make the presentation portion of the screen larger, press the expand button on the toolbar. Press it again to return to regular window.» Questions: If you want to ask a question, type your question in the chat or Q&A boxes. We will address it as soon as we can.» Recording will be posted online. A link to download the recording and pdf when it is available.

3 Overview» Focus is on hourly load modeling» Question 1: How can neural network models be used to identify nonlinear relationships?» Question 2: How can we use this knowledge to build stronger hourly regression models?» Question 3: Can this approach be used to build accurate and robust hourly models?

4 Daily Energy vs Daily Average Temperature

5 Daily Weather Response HDD60 = Max(60 AvgDB, 0) CDD60 = Max(AvgDB 60, 0)

6 Specification 1. Base Model

7 Specification 1: Base Model

8 Degree-Day Variable Calculations (HR 17) Avg DB CDD HDD

9 Specification 1: Model Results

10 Neural Network Background

11 Linear Model Y Y a bx y 1 y 0 a Slope = Derivative dy y1 y b 0 dx x x 1 0 x 0 x 1 X

12 Nonlinear Model Y Local Slope = Derivative dy y1 y 0 dx x x 1 0 Y f (X) y 1 y 0 x 0 x 1 X

13 Neural Network Model Specific: where: General Form: Y G X, b u t 3 3 t 2 2 t t 1 X a X a X a a e 1 1 H t 3 3 t 2 2 t t 2 X X X b b b b e 1 1 H t t 2 2 t t u H B H B B Y Specific Form 2 Nodes, 3 X s: Flexible nonlinear functional form Identifies important nonlinearities Identifies important variable interactions

14 Neural Network Specification t t 2 2 t u H B H B B t Y t 3 3 t 2 2 t t 1 X a X a X a a e 1 1 H t 3 3 t 2 2 t t 2 X b X b b X b e 1 1 H Output Layer Hidden Layer Input Layer H 1 H 2 Y X 1 X 2 X 3 Feed forward Neural Net with a Single Output (Y) One Hidden Layer with Two Nodes (H 1 and H 2 ) Logistic Activation Function in the Hidden Layer Linear Activation Function in the Output Layer

15 Logistic Activations are Nonlinear 1 exp Z HX where Z a0 a1x1 a2x exp Z 1 exp Z H = exp(z)/(1+exp(z)) Z = Weighted Sum of X s

16 Why This Form is Useful

17 Why This Form is Useful

18 Derivatives h t h t h j h, h t j t 2 Z exp 1 Z exp a B X Ŷ t h t h t h t h h h t j t X Z Z H B X Ŷ t t h h 0 t u H B B Y h j t j h,j h,0 t h X a a Z Neural Network Logic Partial Derivatives t h t h t h exp Z H 1 exp Z

19 Model Derivatives in MetrixND (F Tab) Access using GetDeriv Function

20 Local Response Function in MetrixND

21 Terminology Mapping Econometric y = f (X,ß) X s Y s Transformation Sample Coefficients Constant/Slope Estimation Iteration Recursive LS Errors Dynamic Neural Net Artificial Neural Network Network Inputs Network Outputs/Targets Hidden Layer Training Set Network Weights/Connections Bias/Tilt Training/Learning Epoch Back Propagation Mistakes Recurrent

22 Building Weather Splines

23 Capped and Uncapped Degree Days

24 Daily Weather Response Multi-part slopes using Capped Degree-Days HDD60_Cap5 = Min(Max 60 AvgDB, 0, 5) CDD60_Cap5 = Min(Max AvgDB 60, 0, 5)

25 Daily Weather Response Multi-part slopes using Capped Degree-Days HDD55_Cap5 = Min(Max 55 AvgDB, 0, 5) CDD65_Cap5 = Min(Max AvgDB 65, 0, 5)

26 Daily Weather Response Multi-part slopes using Capped Degree-Days HDD50_Cap5 = Min(Max 50 AvgDB, 0, 5) CDD70_Cap5 = Min(Max AvgDB 70, 0, 5)

27 Daily Weather Response Multi-part slopes using Capped Degree-Days HDD45_Cap5 = Min(Max 45 AvgDB, 0, 5) CDD75_Cap5 = Min(Max AvgDB 75, 0, 5)

28 Daily Weather Response Multi-part slopes using Capped Degree-Days HDD40_Cap5 = Min(Max 40 AvgDB, 0, 5) CDD80 = Max AvgDB 80, 0

29 Daily Weather Response Multi-part slopes using Capped Degree-Days HDD35 = Max 35 AvgDB, 0 CDD80 = Max AvgDB 80, 0

30 Daily Energy Vs Daily Average Temperature Multi-part slopes using Capped Degree Days

31 Derivative of NNet w.r.t. Temperature vs Daily Average Temperature Cooling Heating

32 Averaging the Slopes Maximum Powered CDD Average slope between 75 and GWh / Degree Average slope between 60 and GWh / Degree Cooling

33 Daily Weather Response CDDSpline = CDD60 Cap CDD65 Cap CDD70 Cap CDD75 Cap CDD80 Multi-part slopes using Capped Degree-Days

34 Averaging the Slopes Heating Maximum Powered CDD Average slope between 75 and GWh / Degree Average slope between 55 and GWh / Degree

35 Daily Weather Response Multi-part slopes using Capped Degree-Days HDDSpline = HDD60 Cap HDD55 Cap HDD50 Cap HDD45 Cap HDD40 Cap HDD35

36 Daily Weather Response CDDSpline = CDD60 Cap CDD65 Cap CDD70 Cap CDD75 Cap CDD80 Multi-part slopes using Capped Degree-Days HDDSpline = HDD60 Cap HDD55 Cap HDD50 Cap HDD45 Cap HDD40 Cap HDD35

37 Specification 2. Hourly Regression With Daily Weights

38 Specification 2: Daily DD Weights

39 Degree-day Variable Calculations (HR 17) Avg DB Daily Weights Hour by Hour DD Variables CDD HDD

40 Specification 2: Model Results

41 Hourly Weather Response

42 Hour 00 Load Vs Temperature

43 Hour 01 Load Vs Temperature

44 Hour 02 Load Vs Temperature

45 Hour 03 Load Vs Temperature

46 Hour 04 Load Vs Temperature

47 Hour 05 Load Vs Temperature

48 Hour 06 Load Vs Temperature

49 Hour 07 Load Vs Temperature

50 Hour 08 Load Vs Temperature

51 Hour 09 Load Vs Temperature

52 Hour 10 Load Vs Temperature

53 Hour 11 Load Vs Temperature

54 Hour 12 Load Vs Temperature

55 Hour 13 Load Vs Temperature

56 Hour 14 Load Vs Temperature

57 Hour 15 Load Vs Temperature

58 Hour 16 Load Vs Temperature

59 Hour 17 Load Vs Temperature

60 Hour 18 Load Vs Temperature

61 Hour 19 Load Vs Temperature

62 Hour 20 Load Vs Temperature

63 Hour 21 Load Vs Temperature

64 Hour 22 Load Vs Temperature

65 Hour 23 Load Vs Temperature

66 Specification 3. Hourly Neural Network

67 Specification 3. Hourly Neural Network Node 1 (Linear) Node 2 (Sigmoid) Node 3 (Sigmoid)

68 Specification 3: Model Results

69 Using Machine Learning To Determine The Hourly Weather Response

70 Hour 00 Derivative Vs Temperature

71 Hour 01 Derivative Vs Temperature Cooling Heating

72 Hour 02 Derivative Vs Temperature Cooling Heating

73 Hour 03 Derivative Vs Temperature Cooling Heating

74 Hour 04 Derivative Vs Temperature Cooling Heating

75 Hour 05 Derivative Vs Temperature Cooling Heating

76 Hour 06 Derivative Vs Temperature Cooling Heating

77 Hour 07 Derivative Vs Temperature Cooling Heating

78 Hour 08 Derivative Vs Temperature Cooling Heating

79 Hour 09 Derivative Vs Temperature Cooling Heating

80 Hour 10 Derivative Vs Temperature Cooling Heating

81 Hour 11 Derivative Vs Temperature Cooling Heating

82 Hour 12 Derivative Vs Temperature Cooling Heating

83 Hour 13 Derivative Vs Temperature Cooling Heating

84 Hour 14 Derivative Vs Temperature Cooling Heating

85 Hour 15 Derivative Vs Temperature Cooling Heating

86 Hour 16 Derivative Vs Temperature Cooling Heating

87 Hour 17 Derivative Vs Temperature Cooling Heating

88 Hour 18 Derivative Vs Temperature Cooling Heating

89 Hour 19 Derivative Vs Temperature Cooling Heating

90 Hour 20 Derivative Vs Temperature Cooling Heating

91 Hour 21 Derivative Vs Temperature Cooling Heating

92 Hour 22 Derivative Vs Temperature Cooling Heating

93 Hour 23 Derivative Vs Temperature Cooling Heating

94 Computing The Hourly Degree-Day Weights Average slope of 5 degree bucket = Max = Min = Slope Max/MinSlope

95 Specification 4. Hourly Regression With Hourly Weights

96 Specification 4: Model Results

97 Adding Rolling Lag DD Variables Specification 5 Add 6 Period Lag Specification 6 Add 24 Period Lag

98 Specification 5: Model Results

99 Specification 6: Model Results

100 Specification 7 Model Results

101 Specification 8: Model Results

102 Specification 9: Model Results

103 Specification 10: Results

104 Specification 11: Results

105 Conclusions Cooling Heating

106 Conclusions» Neural networks provide a powerful framework for identifying nonlinear relationships.» Detection and quantification of nonlinearities is a form of machine learning.» Neural network derivatives can be processed to construct weights for degree day splines.» Regression models using these splines are equivalent to the comparable neural networks.» Adding additional interaction variables results in regression models that are rich, accurate, and robust.

107 FORECASTING BLOG

108 2018 SCHEDULED EVENTS Workshops Dates Location Energy Forecasting 101 February 28 - March 1 Washington, DC Introduction to SAE April 24 Austin, TX Advanced Forecast Topics April 24 Austin, TX Fundamentals of Modeling Energy and Demand Forecasting October Chicago, IL Fundamentals of Short-term Operational Forecasting September San Diego, CA Meetings 16th Annual Energy Forecasting Meeting April Austin, TX 12th Annual ISO Forecasting Summit May San Diego, CA European User Meeting TBD TBD Itron Utility Week September 30-October 2 Scottsdale, AZ Webinars Using Neural Networks to Build Robust Hourly Models February 20 On-line Budget Forecasting A Practitioner s Handbook May 22 On-line 2018 Forecast Accuracy Benchmarking Survey and Energy Trends September 11 On-line Short-term Load Forecasting A Practitioner s Handbook December 4 On-line

109 CONTACT US

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