Weather, renewables and volatility: forecasting for profit
Accurate renewable and weather forecasting underpins profitable trading, especially for portfolios exposed to intermittent generation.
Weather models and Renewable Energy Sources (RES) data directly impact market prices, and there are various ways to explore the future of a plant’s profitability, with a combination of hypothetical and probabilistic forecasting methods often the most useful. Forecasting is closely linked to the financial decisions that traders and data specialists must make, influencing trading decisions and potential portfolio hedging.