Could Save Your Power Company

Darrell Proctor | Source: Power | Posted 03/15/2025

Keyword Tags:

The ERCOT region, specifically, has massive wind and solar capacity. Net-demand forecasts (total demand minus renewable generation) help predict when conventional generation will be needed to fill gaps from variable renewable resources. Market participants also use forecasts as a risk management tool.


AI generated summary

Net-demand energy forecasts are essential for participants in competitive electricity markets like ERCOT, as they help predict supply-demand imbalances and optimize bidding strategies. Accurate forecasting is crucial for asset optimization, allowing power generators to commit resources effectively and avoid financial losses. With Texas's high renewable energy capacity, net-demand forecasts assist in determining when conventional generation is needed to compensate for variable renewable resources. Additionally, these forecasts serve as a risk management tool, enabling market participants to hedge against volatile conditions.

The importance of accurate forecasting was highlighted during Winter Storm Uri, which caused ERCOT wholesale prices to soar to $9,000/MWh, leading to severe financial repercussions for many retail electricity providers. Companies like Amperon, which utilize AI for forecasting, were able to provide early warnings to their clients, allowing them to secure power at significantly lower rates before the price spike. Despite regulatory changes following the storm, the need for precise forecasting remains critical as the energy market evolves, particularly with the increasing integration of renewable resources.



Link to Original Article

Please find the link to the full article below. (Please note that content provider might require a paid subscription)


Source Link: https://www.powermag.com/ai-powered-energy-forecasting-how-accurate-predictions-could-save-your-power-company/

Create a free trial account: Sign Up

Grid monitor is free to try. No credit card required


Already have an account? Login

Most Active PUCT Filings

APPLICATION OF ENTERGY TEXAS, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE SETEX AREA RELIABILITY PROJECT IN JASPER, MONTGOMERY, NEWTON, POLK, SAN JACINTO, TRINITY, TYLER, AND WALKER COUNTIES - (397 filings)

APPLICATION OF CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC FOR APPROVAL OF ITS 2026-2028 TRANSMISSION AND DISTRIBUTION SYSTEM RESILIENCY PLAN - (90 filings)

CY 2024 ANNUAL POWER LINE INSPECTION & SAFETY REPORT IN PURSUANT TO 16 TAC § 25.97(F) - (82 filings)

APPLICATION OF ENTERGY TEXAS, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY TO CONSTRUCT A PORTFOLIO OF DISPATCHABLE GENERATION RESOURCES - (70 filings)

BROKER REGISTRATIONS - (69 filings)

PROJECT TO SUBMIT EMERGENCY OPERATIONS PLANS AND RELATED DOCUMENTS UNDER 16 TAC § 25.53 - (62 filings)

APPLICATION OF EL PASO ELECTRIC COMPANY FOR AUTHORITY TO CHANGE RATES - (60 filings)