Trading and Risk

Battling Blackouts with Accurate Renewable Power Forecasting

byRob Allerman

As a professional power market forecaster, you better believe that I hate to see instances of rolling power blackouts. Americans from California to New York are experiencing power interruptions this summer, which brings on loads of new market risks to individual consumers and businesses alike.

Thankfully, the latest scare in California was manageable for utilities thanks to efforts of cooperation, hydro-generation and a stroke of luck with the weather. B.C. Hydro was able to send additional hydro-generation to CAISO and water supplies to Bonneville Power Administration, which increased its hydro-generation and sent more power to CAISO, too.

Cooler weather arrived by chance — and we won’t always be able to rely on the luck of good weather when managing power interruptions. Back-up supplies may become increasingly important as wildfires flare up, which could disrupt transmission coming from outside of California.

Enverus Forecast vs ISO SP-15 chart

 

The chart above tells a couple of interesting stories and demonstrates the reliability of Enverus Power Intelligence load forecasting during rolling blackouts.

The first two peaks in the chart — Thursday, Aug. 13 and Friday, Aug. 14 — show that Enverus forecasts (lime green line) accurately predicted the spike in power consumption, closely aligning with the actuals (darker green line).

While Enverus forecasts portrayed the pending heat wave and correlated demand for power, the public power forecast from the California ISO was not prepared for the demands that would pull on the power grid.

This is why accuracy matters. Utilities and power traders rely on accurate data to make important split-second decisions.

Now let us move to the peak on the chart from Monday, Aug. 17. California was able to shed enormous amounts of power before cooler weather came Tuesday and Wednesday. The public ISO forecast (orange line) is coming in much higher than the actuals, as the ISO continues to hold on to higher load forecasts to ensure the grid has the resources available in case of another spike.

This strategy is utilized across other ISOs, too, which makes sense from a strategic perspective. For utilities to get a more accurate view of power load forecasts, the AI-based methodology we utilize is lending more precision. We are hitting it right on.

This one week shows how having accurate renewables forecasts enables utilities to better manage their resources, allowing them to mitigate blackouts and procure the right amount of resources to avoid these situations.

Enverus, formerly PRT, has more than 25 years of experience using machine learning to forecast renewables, hydro, wind and solar power. We know these markets and we know how to manage load forecasting for these markets.

In December 2019, I wrote about the increasing need for accurate power load forecasting technology as renewables gain market share and boost market volatility. Well, never in my wildest dreams would I have thought things would get this wildly volatile in 2020. COVID-19 was definitely not a part of the plan for any of us.

We are proud to continue to help utilities and power traders get through these tough spells of blackouts. 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.

Renewables aren’t always easy to manage, but having a reliable forecast will always be the key to managing volatility. Sign up today for complimentary access to our daily power market reports to keep ahead of the markets.

Enverus and iir energy webinar graphic
Click below to register for our upcoming webinar!

REGISTER NOW

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-transition-group-of-professionals-meeting
Energy Transition
ByAlex Nevokshonoff

Each hub developed a unique hydrogen production strategy that was chosen to best utilize the regionally available resources such as renewable energy type and quality, nuclear availability, existing infrastructure and carbon sequestration basin viability.

OFS-banner-485926689 (1)
Intelligence
ByErin Faulkner

Nearly a decade ago, Enverus, then known as DrillingInfo, posted a Gulf of Mexico (GOM) primer on its blog. It remains one of our most popular posts. A few things have changed since 2014, so we decided it was time...

Electric Vehicle Charging
Energy Transition
ByPrashant Kumar

The electric vehicle (EV) and plug-in hybrid EV markets are experiencing significant growth in North America, Europe and China. The surge in demand has prompted notable advancements in battery technology to cater to the expanding market.

Oil-drilling-women-energy
Energy Analytics Financial Services
ByTucker Keren

The North American play-level inventory rankings are in, and there’s been some shakeups. After almost a year since the last publication by Enverus Intelligence Research (EIR), the remaining inventory by play has seen some movement on the leaderboards. While EIR...

Enverus Blog - What you should know about the future of mineral acquisitions
Minerals
ByPhillip Dunning

Take the guess work out of providing your family insights into the estate and be empowered to manage your assets.

midstream-post
Intelligence Midstream
ByErin Faulkner

Midstream operators connected 3,524 oil and gas wells to gathering systems in the U.S. during Q2, according to an analysis using Enverus Core data presented in the most recent issue of Midstream Pulse. This is up slightly from the 3,447...

energy-transition-research
Energy Transition Financial Services
ByEnverus

The shift away from hydrocarbons and towards renewable and low-carbon technologies is not only changing the way we power our lives, but also offers a wealth of investment opportunities for those who can decipher the complex landscape. Traditional institutional investors...

Enverus Blog - Analyst Takes: Looking back at March energy trends
Analyst Takes Trading and Risk
ByChris Griggs

As we commence October, it’s crucial to examine the ever-evolving energy landscape from the past month. Our Enverus Intelligence® | Research (EIR) team has diligently dissected key trends and breakthroughs, delivering insightful and data-driven perspectives that empower you to make...

accurate-grid-forecastin
Power and Renewables
ByEnverus

2022 marked a significant milestone for renewable wind generation in North America. New wind capacity reached 14.7GW (gigawatts) from 93 projects, an increase from 2021 of 12GW from 54 projects. Looking to 2024, winds of opportunity show 55GW from a...

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

Register Today

Get Energy Transition Research updates straight to your inbox by filling out the form below.

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert