Trading and Risk

Coronavirus Power Demand Destruction Forecasting 101

byRob Allerman

When the coronavirus power load demand destruction began appearing in Enverus Trading & Risk’s daily ISO load forecasts, our team had to quickly tackle a new set of realities.

Just like businesses all over the world, we were faced with never-before-seen scenarios as a result of the nationwide shutdowns. Our machine learning-based forecasting tools have never learned the demand dynamics at play—nor had our team. We put our heads together and quickly came up with a plan—and a way to measure the demand destruction for our customers.

First, a primer on our typical standard operating procedure: our machine learning models look at actual temperature and power demand data from previous days and weeks, learning as it goes. The models were built to respond to load growth or anything that may be happening in the market.

This presented a minor challenge. The model was suddenly forced to predict demand in a scenario where it had no historical data to compute. Our customers were understanding that it would take several days for the model to absorb new data and relearn the market. We had customers reach out and ask us how they can track the demand destruction underway.

The solution

We launched a new model that knows what the temperatures were for the load from February 2019 to February 2020. But it doesn’t know anything that’s been happening over the last month.

Below is the first look at the results of our study—just a few days since launch. Now that we are running those two load forecasts in parallel (one that’s learning the demand destruction, and one that isn’t) you will be able to see the difference between the two loads, and you can identify the level of demand destruction.

What’s happening in ERCOT, the Texas power market?

We have measured little to no demand destruction due to the coronavirus and governments implementing policies to reduce the virus in ERCOT. However, we are starting to detect some demand destruction over the last couple of days. When comparing similar pre-COVID-19 temperatures, we are detecting 1-3% demand destruction.

In NYISO, the New York power market, it’s a different story …

In NYISO, it’s a different story. We have detected demand destruction starting early last week. When comparing similar pre-COVID-19 temperatures, we are detecting 10-15% demand destruction.

Helping power market participants in a time of need

Power trading liquidity has fallen amid the uncertainty around the coronavirus pandemic. We’d like to offer you free access to this analysis in our twice-daily reports during this tough time.

We are all in this together, and we look forward to continuing to help power traders and analysts make the best decisions for their businesses, even in trying and uncertain times. Sign up here to get access to our new demand destruction load forecasts, which we are offering to you on a complimentary basis.

Picture of Rob Allerman

Rob Allerman

Rob Allerman is Senior Director of Power Analytics at Enverus. Before joining Enverus, Rob was Head of North America Power Analytics at EDF Power Trading in Houston, Texas, and spent many years as a power analyst at Deutsche Bank. Rob also worked in the western U.S. for nearly 10 years at Power Utilities and started his career as a Hydrologist for the Federal Government.

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content

Enverus Press Release - Renewable diesel: Too much of a good thing?
Energy Transition
ByAdam Robinson, Enverus Intelligence® | Research (EIR) Contributor

Controlled Thermal Resources goes public, marking a pivotal moment for geothermal energy investment in the U.S. and its future growth.

Enverus Press Release - Welcome to EVOLVE 2025: Where visionaries converge to shape the future of energy
Energy Market Wrap
ByEnverus

Diamondback boosts drilling efficiency, Chord scales four‑mile laterals, Expand Energy cuts Haynesville breakevens, Diversified buys East Texas assets, and Bay du Nord progresses.

Iran risks and supply outages buoy prices, but surplus remains
Analyst Takes Trading and Risk
ByAl Salazar, Enverus Intelligence® Research (EIR) Contributor

Learn about the impact of Middle East energy disruptions on oil supply and global markets. Stay informed with Enverus Intelligence® Research.

Enverus Intelligence® Research Press Release - Recap: How the Trump Administration is reshaping energy markets
Energy Market Wrap
ByEnverus

Diamondback boosts drilling efficiency, Chord scales four‑mile laterals, Expand Energy cuts Haynesville breakevens, Diversified buys East Texas assets, and Bay du Nord progresses.

Enverus Press Release - Enverus releases Investor Analytics: Refined, actionable financial insights at your fingertips
Energy Transition
ByThomas Mulvihill

This week’s ETT reviews PJM’s extension of its capacity market price collar through 2030 and new expedited interconnection track. While aimed at boosting new capacity, EIR finds the measures temporary as load forecasts remain more bullish than ours.

Carbon storage in question: Illinois regulation could threaten key CCUS projects
Business Automation
ByIan Elchitz

Artificial Intelligence (AI) has become a constant topic in enterprise software conversations. For finance and supply chain leaders in oil and gas companies, however, many of those conversations feel disconnected from reality. Promises are big, terminology is vague, and outcomes...

Enverus Intelligence® Research Press Release - Haynesville operators calculate remaining growth
Analyst Takes Trading and Risk
ByAl Salazar, Enverus Intelligence® Research (EIR) Contributor

Recent joint U.S.- Israeli military strikes in Iran and the ongoing geopolitical tensions in the region cast a significant shadow over global energy markets. As the world watches closely, the potential for regime change and the implications for oil and...

Enverus Press Release - Undo the queue: Enverus acquires Pearl Street Technologies to solve for a more reliable, resilient grid
Oilfield Services
ByAdriana Bickford

Oilfield service companies have seen this pattern before: a new growth opportunity emerges, capital flows and early movers reshape their business models. You’ve lived through the shale revolution, through consolidation waves, through efficiency cycles. Some pivots worked. Some didn’t. What makes this moment different is the structural shift in electricity demand. ...

Enverus Press Release - Class VI wave expected to hit US
Energy Market Wrap
ByEnverus

BP delivers strong 2025 results, Oxy boosts onshore efficiency, ConocoPhillips advances Surmont, Whistler sanctions Bay Runner, and Kinetik explores a potential sale.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Ready to Subscribe?

Ready to Get Started?

Ready to Subscribe?

Sign Up

Power Your Insights