Accurate forecasts of the expected power output in the next minutes, hours or days enable grid operators, generators, traders and other market actors to manage the volatility of wind and solar power, maximize the usage of renewable energy, and minimize balancing costs. Power forecasts have thus become a key economic factor, and their accuracy directly impacts the economic viability in an ever more competitive power market.

Several factors need to be taken into account in order to achieve consistent, high-quality forecasting results: State-of-the art forecasting methods, robust infrastructure and integrated systems to ensure consistent data quality and reliable delivery, and a coherent evaluation framework reflecting business processes and costs associated with forecast errors.

This white paper provides an overview of forecasting methods, including data sources used in those forecasts and explains how collaboration of providers and users, as well as seamless integration of their systems, leads to better forecast results. It discusses which role forecasts play in renewable energy businesses, why this is linked to the way forecasts are evaluated, and how this knowledge is applied in order to create optimal power forecasts using enercast e³ technology.