Renewable Energy Forecasting: Machine Learning, AI & Algorithmic Predictions

Posted on 18 June 2024

Renewable Energy Forecasting: Machine Learning, AI & Algorithmic Predictions

Supply and Demand, a fundamental pillar to the energy industry. Atlas holding up the (energy) world. As we navigate the energy transition, the need for powerful and accurate energy forecasting becomes paramount. From energy consumption and energy pricing to renewable performance and cloud formations.

With increasing electrification and the intermittent nature of major energy generators such as wind and solar, it is crucial to accurately predict both energy consumption and generation to effectively balance the grid. This is where Machine Learning (ML) steps in.

The Role of Machine Learning in Energy Forecasting

ML's ability to handle complex and dynamic datasets makes it an ideal tool for energy forecasting. Creating a computer-generated inference based on historical data and future predictions. ML enhances the efficiency and reliability of energy supply, scheduling, power system operations, grid stability, and demand forecasting. We can also use ML to model future scenarios, plugging in forecasted EV proliferation, large-scale BESS implementation and market shocks for example.

Advanced Algorithms and Models

The energy forecasting industry is rapidly evolving, with a plethora of algorithms and models available to data scientists. From classic time series analysis models like ARIMA to sophisticated recurrent neural networks (RNNs) and deep neural networks (DNNs) for timestamp-intensive forecasting, Models that can learn the relationship between inputs and outputs but also interpret how inputs influence outputs can make predictions far more accurate and improve baseline calculations.

Beyond Demand Forecasting

Energy demand forecasting is just the beginning. In collaboration with energy traders, particularly those deploying energy storage solutions, ML optimizes algorithmic dispatch and charging of energy storage systems. This leads to enhanced operational efficiency, reduced asset degradation, faster and more accurate decision-making, and optimal asset deployment in commercial markets.

Accurate Forecasting: The Backbone of Market Competitiveness

Accurate forecasting of energy generation, supply, and pricing is essential given the complexities of the short-term power market, ancillary services, and energy storage. Utilizing powerful forecasting, ML, and algorithms is critical for maintaining competitiveness in today's market.

Leveraging SaaS and In-House Expertise

Deploying (SaaS) from various route-to-market providers and analytics services is a cost-effective strategy for remaining competitive. This approach is particularly dominant among growing (IPPs). However, an increasing number of companies are hiring in-house data scientists to leverage quantitative techniques, with a focus on advanced statistical analysis and forecasting. This provides greater insight and control over portfolio performance.

Machine Learning is revolutionizing renewable energy forecasting. By enhancing predictive accuracy and operational efficiency, ML helps balance the grid, optimize energy storage systems, and navigate the complexities of the energy market. Whether through SaaS or in-house expertise, the integration of advanced ML techniques is essential for both staying competitive but also securing our energy future and grid demand.

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