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 releases Top 50 Public E&P Operators of 2024
Energy Market Wrap
ByEnverus

Western buys Brazos for $1.6B, Keyera pushes its Plains deal, Expro adds MPD tech, Chevron holds steady, and Exxon expects tight markets to persist.

Enverus Press Release - Enverus Earns Top Workplaces Honors for Fourth Consecutive Year
Trading and Risk
ByChris Griggs

In energy trading, risk problems do not always begin with the risk model. Often, they begin much earlier in the disconnected workflows surrounding the decision itself: By the time the full picture comes together, the moment to respond may already...

Enverus Press Release - Enverus honored as one of Alberta’s leading employers
Minerals
BySusie Yuill

In mineral acquisition, there’s a gap between how fast title needs to happen and how fast it actually happens. Deals close in days. Manual title takes weeks. That gap is where acquisitions are won and lost. Most mineral buyers have...

Enverus Media Advisory - Trump vs. Harris: A tale of two energy policies
Energy Transition
ByCarson Kearl, Enverus Intelligence® Research (EIR) Contributor

Hyperscaler capex surge fuels data center demand and forces investors to weigh AI-driven revenue versus higher spending.

Enverus Intelligence® Research Press Release - Until LNG demand arrives, natural gas expected to struggle at $3
Energy Market Wrap
ByEnverus

Shell acquires ARC in a C$22B deal, Helix and Hornbeck merge, KKR exits Pembina Gas Infrastructure, Antero accelerates integration gains, and Golden Pass ships its first LNG cargo.

Global gas, LNG, Haynesville and Permian outlooks reveal key trends in production, pricing and infrastructure expansion
Business Automation
ByIan Elchitz

This is the fifth installment in our series of blog articles dealing with source-to-pay and upstream oil and gas. Read the previous blog here.   For a lot of supply chain leaders in upstream oil and gas, the contract still feels like the...

Enverus Press Release - Class VI wave expected to hit US
Energy Transition
ByBrynna Foley, Enverus Intelligence® Research

Rising solar PPA prices Shift Energy Economics Solar PPA prices climb as developers proceed with projects; Enverus details impacts on solar, wind, and storage markets.

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

People have been calling the top of the Permian for years. And yet, they keep having to walk it back.  Our latest Permian inventory analysis from the Enverus Intelligence® Research (EIR) team shows why the basin continues to defy those...

Carbon storage in question: Illinois regulation could threaten key CCUS projects
Power and Renewables
ByMorgan Kwan

The S&P Global Commodities conference in Las Vegas brought together investors, developers, utilities, and hyperscalers at an inflection point for the power sector. Four themes dominated the conversation. Each one is directionally right. Each one is also commercially incomplete. Here’s...

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