We propose novel smart forecasting models for Direct Normal Irradiance (DNI) that combine sky image processing with Artificial Neural Network (ANN) optimization schemes. The forecasting models, which were developed for over 6 months of intra-minute imaging and irradiance measurements, are used to predict 1 min average DNI for specific time horizons of 5 and 10 min. We discuss optimal models for low and high DNI variability seasons. The different methods used to develop these season-specific models consist of sky image processing, deterministic and ANN forecasting models, a genetic algorithm (GA) overseeing model optimization and two alternative methods for training and validation. The validation process is carried over by the Cross Validation Method (CVM) and by a randomized training and validation set method (RTM). The forecast performance for each solar variability season is evaluated, and the models with the best forecasting skill for each season are selected to build a hybrid model that exhibits optimal performance for all seasons. An independent testing set is used to assess the performance of all forecasting models. Performance is assessed in terms of common error statistics (mean bias and root mean square error), but also in terms of forecasting skill over persistence. The hybrid forecast models proposed in this work achieve statistically robust forecasting skills in excess of 20% over persistence for both 5 and 10 min ahead forecasts, respectively. (C) 2013 Elsevier Ltd. All rights reserved.