TEJ Dictionary
Published in

TEJ Dictionary

【TEJ Dictionary】Industrial Value-added Application of Power Data

What can we tell from power data?

Preface

In 2020, the COVID-19 outbreak was continuing to grow around the world. As vaccination was not universal, keeping social distance was the most effective way to reduce the spread of the epidemic. Governments began to implement work from home policies. Some countries had even been put on lockdown and had to follow the rules to go out, greatly changing the life pattern of people, also indirectly causing the domestic electricity loading unable to load. In the middle of May, Taiwan suffered two power cuts in five days, adding to the public’s anger during the summer heat. Electricity is closely related to people’s life, as well as various industries. Once a power cut without warning, it will suffer heavy losses. In such a high dependence on electricity, we can further discuss, in addition to the business indicators, whether the power data can be one of the influencing indicators to analyze the overall industry.

Highlights

📍 Introduction of business indicators
📍 Construction of industrial dynamic index

Business indicators

Business indicators are compiled by the National Development Council, reflecting the direction of business fluctuations and the variety of economic growth rate. Currently, the published business indicators include leading indicators, coincident indicators and lagging indicators, the definitions of which can be seen in the following table:

Business Indicators
Business indicators

Leading indicators have the property of leading business fluctuations and can be used to predict future business change, coincident indicators represent the current economic situation, and can measure the fluctuation of the economy, lagging indicators are used to verify past business fluctuations. Business indicators are published every month. If we can analyze industry dynamic trends by real-time and complete power data, we will be able to more effectively improve the application value of the industry business indicators. This will use the Advanced Metering Infrastructure (AMI) that Taipower has been actively developing in recent years. Here is the basic information of AMI.

AMI is an energy system, through advanced equipment, such as smart meters, water meter and gas tables, etc., and a combination of network real-time energy monitoring, measurement, use and schedule. We have handled 60% of Taiwan’s electricity loading and recorded the user’s 15 minutes electricity information, which is closely related to the production activities of the industry, and we can see the long-term development trend of the industry. The immediacy of AMI can be used as a leading indicator to predict the economic trend, and also reflect the industrial trend. Avoid errors or delays caused by human factors.

Industrial dynamic index

AMI data is establishing the foundation of industrial dynamic index, because of the immediacy of power data can represent closely related to industrial production activities, so the index is built by the production index as the forecast target to assess the future trend of the industry. For detailed explanation of the model, please click the link below for more in-depth understanding.

Industrial dynamic index
Industrial dynamic index
Industrial dynamic index

Conclusion

The empirical results indicate that the immediacy of the AMI information makes the industrial dynamic index lead the index which is released by the Ministry of Economic Affairs 2~3 months. As an important basis for industrial production, industrial dynamic information can be used to predict production activities within the next 30 days, while the change of the production activities have highly correlation with the company’s revenue, the correlation coefficient is more than 80%. Therefore, the industrial dynamic index has a high application value for assessing the performance of the industry. Under the rapid change of the global economy, it has always been the goal of governments and enterprises to hold the fluctuation of the economy. AMI has helped to improve the delay of economic indicators, and can effectively play the additive application benefits of power data.

This article is based on Industrial value-added application of power data
author : 王金墩、楊新金、陳玉芬、蘇志雄

You can also follow our instagram: tej87681088, or visit the official website of TEJ Taiwan Economic Journal, we provide a newsletter every two weeks and TEJ API financial notes, etc.

If you like this article, you can give us support and encouragement. If you have any questions, please leave a comment or write to us. We will reply to you as soon as possible.💪

More About Us

⭐️TEJ official website
⭐️TEJ E Journal
⭐️TEJ Instagram

☎️: 02–87681088
✉️: tej@tej.com.tw

See more

Unlisted

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
TEJ 台灣經濟新報

TEJ 台灣經濟新報

907 Followers

TEJ 為台灣本土第一大財經資訊公司,成立於 1990 年,提供金融市場基本分析所需資訊,以及信用風險、法遵科技、資產評價、量化分析及 ESG 等解決方案及顧問服務。鑒於財務金融領域日趨多元與複雜,TEJ 結合實務與學術界的精英人才,致力於開發機器學習、人工智慧 AI 及自然語言處理 NLP 等新技術,持續提供創新服務