Energy Analytics Power and Renewables

Accurate Power Forecasts Essential to Survive This Summer

byRob Allerman

It’s going to be a long, hot summer for folks living on the U.S. West and Gulf Coasts.

As early as April, the Enverus Power Market Analytics team has advised its customers to prepare for extreme high temperatures this summer. As we noted last week, western power markets from California to Texas came up against severe heat waves and low wind production, which led to a new June record for power demand in ERCOT last week.

When extreme weather hits and power price volatility goes haywire, energy traders need the most accurate forecasts available to make difficult choices. And as dangerous and deadly as February’s winter freeze and subsequent power outages in Texas were, the high temperatures we’re experiencing early in the summer months are equally unsafe. Secure power supply and accuracy in predicting load will be essential this summer.

Here’s a recap of the impacts to Texans and Californians in last week’s high temperatures:

  1. From June 14 though June 18, ERCOT and CAISO asked their customers to conserve power to prevent rolling blackouts.
  2. Historically high temperatures were measured from Houston to San Diego to Palm Springs, California.
  3. Houston reached 100 degrees Fahrenheit, which was its third earliest time to reach 100 degrees since 1930.
  4. Palm Springs matched its previous all-time max temperature of 123 degrees Fahrenheit.

The importance of getting load forecasts right throughout extreme weather events is the key driver of Enverus’ innovation in developing the outlooks that guide power traders around the country.

Record-high power demand to match extreme high temperatures

Even as Texans and Californians took on the responsibility of turning up thermostats and conserving power last week, peak loads were breathtaking in both ERCOT and CAISO.

  • In Texas, peak loads were tremendous for ERCOT with peak load 104% above last year’s June record peak, or 115% above the average June peak load.
  • California peak loads were even more impressive with peak load 120% above last year’s June peak load, or 140% above June averages.

Despite the severe demand and heat conditions, the Enverus peak load forecasts for ERCOT and CAISO SP-15, the grid that serves Southern California, were exceptionally accurate. We’re pleased to share the results from last week’s analysis:

In ERCOT, Enverus averaged a MAPE of 1.41% for June 14 through June 18, beating out the ISO peak MAPE average of 1.59%.

In CAISO SP-15, the results were even more dramatic. Enverus peak MAPEs averaged 6.54% vs. the ISO’s 10.15% — that 3.61 point difference in accuracy can mean the difference between profits and losses in power trading.

Deep learning enhances AI for a better accuracy and lower MAPEs

Last year, we started implementing deep learning into our machine-learning-based power market forecasts. Deep learning can be described as the more advanced cousin of machine learning, with stronger computing power and more granular datasets. The results of this product innovation blew us away and brought immediate results — our MAPEs (mean absolute percentage error) were now significantly lower than that of the Texas power grid operator.

We are proud to continue to help utilities and power traders get through tough spells of grid insecurity. And we continue to look to the future and how we will use our technology to support the management of volatility as renewables’ influence grows.

We know that western markets won’t be easy to manage this year. Having a reliable forecast will always be the key to managing volatility. Sign up below for complimentary access to our daily power market reports to keep ahead of the markets.

Sign up to access a free trial of Enverus western power market coverage today.

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

Energy Analytics Energy Transition
ByKevin Runciman

In recent years, the oil and gas industry has witnessed a remarkable shift in focus towards environmental performance, driven by the growing importance of environmental, social and governance (ESG) considerations. Among the various environmental concerns, reducing flaring has emerged as...

Energy Analytics Energy Transition
ByAndrew Gillick

In case you missed it, Enverus virtually hosted EVOLVE, our flagship conference, May 16-17. The event included two full days of presentations, panels and keynotes, distilling the most relevant data and thoughts on the industry today.  Below Andrew Gillick, managing director...

Energy Analytics Other
ByShane Reddell

In the current landscape of heightened environmental and social consciousness, upstream oil and gas companies face significant challenges in achieving favorable refinancing for their existing credit facilities. These challenges are compounded by the recent volatility in the debt markets and...

Energy Analytics Intelligence Publications
ByMaurice Smith

Wildfires that have already scorched more than double the average annual fire destruction across Alberta forced the shut-in of more than 300,000 boe/d while threatening future shuttering of output from the so-far largely unaffected oil sands region. Record temperatures saw...

Energy Analytics Energy Transition
ByHeather Leahey

CO2 containment risk has become one of the most popular topics among our clients evaluating CCUS projects. Operators need to understand and evaluate subsurface features that could trigger CO2 migration and containment losses as well as introduce additional safety, reputational...

Energy Analytics Energy Transition
ByRyan Luther

Anyone who thinks spending time at a public charging station is a blocker to buying an electric vehicle (EV) might want to consider the numbers behind EV and internal combustion engine (ICE) vehicle refueling times. The answer is that it...

Enverus Blog - 6 tax preparation tips for mineral and royalty managers
Energy Analytics
BySilas Martin

Recent years have been a roller coaster for mineral buyers, from record low commodity prices to highs for oil and natural gas in the last year. Going forward, challenges and opportunities will be plentiful. We expect oil prices between $80...

Power and Renewables
ByKenneth Curtis

It’s that time of year when generator and transmission outages are at their peak in PJM. The first half of April has not disappointed volatility-wise as the WHUB/NIHUB spread has set new 30-day highs largely driven by congestion. Figure 1:...

Enverus Blog - April's energy outlook: Analyst insights you can't miss
Analyst Takes Energy Analytics
ByChris Griggs

May marks a new month, and it’s essential to assess the energy landscape of April. Our Enverus Intelligence® | Research (EIR) team has scrutinized critical trends and advancements, delivering to you insightful analyst takes that can shape your business decisions....

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

Access Product Tour

Speak to an Expert

Book a Demo