The importance of accurate load forecasting
In the energy stratosphere, utilities, energy providers, and system operators might fail to line up with periods of high or low electricity demand. Should supply be higher than demand, billions are wasted on generating and purchasing unnecessary power or on insurance costs, and penalties imposed. In the end-user reality, a ‘’black-out’’ situation might occur. This usually happens because load forecasting, a foundation of the energy planning sector, is not accurate. Although utilities and specialized load forecasting companies use data from smart meters and weather patterns, they manage to predict only a 93-95% accuracy, which results in billions being lost each year.
Demand planning and grid management
The reality is that energy consumption is extremely volatile, far more volatile than any other commodity while a common feature of electricity is that the spikes’ intensity is non-homogenous in time. What's more, electricity penetration to the grid being generated from renewables (wind,