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Market Trends That Will Drive the Next Evolution of Operational Load Forecasting Models

August 22, 2018

Grid operators schedule and dispatch generation resources to meet demand in as cost-effective manner as possible. In a perfect world, the least costly solution would be to schedule and dispatch generation where the supply stack of generation exactly crosses the demand curve. With perfect foresight, generation would exactly offset demand. Because grid operators do not have perfect foresight of demand and there is always the possibility that a failure will occur somewhere within the electric grid, operators schedule an excess level of generation in the form of spinning reserves. This type of risk-adverse scheduling is common practice throughout the industry. In fact, most grid operators are held to a regulatory-prescribed minimum operating reserve margin. These operating reserve margins are accepted as a reasonably societal cost for avoiding generation shortages.

To read more about market trends that will drive the next evolution of operational load forecasting models, click here.

By Dr. Frank A. Monforte

Director of Forecasting Solutions

Dr. Frank A. Monforte is Director of Forecasting Solutions at Itron, where he is an internationally recognized authority in the areas of real-time load and generation forecasting, retail portfolio forecasting, and long-term energy forecasting. Dr. Monforte’s real-time forecasting expertise includes authoring the load forecasting models used to support real-time system operations for the North American system operators, the California ISO, the New York ISO, the Midwest ISO, ERCOT, the IESO, and the Australian system operators AEMO and Western Power. Recent efforts include authoring embedded solar, solar plant, and wind farm generation forecast models used to support real-time operations at the California ISO. Dr. Monforte founded the annual ISO/TSO Forecasting Summit that brings together ISO/TSO forecasters from around the world to discuss forecasting challenges unique to their organizations. He directs the implementation of Itron’s Retail Forecasting System, including efforts for energy retailers operating in the United Kingdom, Netherlands, France, Belgium, Italy, Australia, and the U.S. These systems produce energy forecasts for retail portfolios of interval metered and non-interval metered customers. The forecast models he has developed support forecasting of power, gas and heat demand and forecasting of wind, solar, landfill gas, and mine gas generation. Dr. Monforte presides over the annual Itron European Energy Forecasting Group meeting that brings together European Energy Forecasters for an open exchange of ideas and solutions. Dr. Monforte directed the development of Itron’s Statistically Adjusted End-Use Forecasting model and supporting data. He founded the Energy Forecasting Group, which directs primary research in the area of long-run end-use forecasting. Recent efforts include designing economic indices that provide long-run forecast stability during periods of economic uncertainty. Email Frank at frank.monforte@itron.com, or click here to connect on LinkedIn.