Solar forecasts for energy trading have become vital, in particular with the arrival of direct marketing in France, and the gradual withdrawal of feed-in tariffs across Europe.
The number of solar installations connected to electrical grids keeps on increasing around the world. A recent report from the American group Mercom Capital forecasts nearly 65GW of global solar installations for 2016. A growing injection of intermittent renewable energy sources (RES) has a direct impact on grid stability, unless it is managed through decision-making tools such as solar power forecasting.
Therefore, RES are becoming increasingly present across international energy trading markets. The rising volumes sold on the spot markets, along with the variable characteristic of these resources, bestow a greater impact on the energy prices. Energy traders must thus anticipate as most accurately as possible the renewable production.
In a context of rising flexibility needs, solar forecasts for energy trading can be used to trade solar power in a smart fashion. Doing so, they are able to schedule more efficiently the flexible resources that will be used for balancing supply and demand, and to optimize their general bidding strategies.
Moreover, most European countries are dropping feed-in tariffs and are heading towards direct sales on the energy markets. In France, direct marketing has made its appearance from the 1st of January 2016 in order to accompany this transition.
Through its tool Soleka, Reuniwatt supplies intra-day and multiple day-ahead forecasts to energy traders. The latter can then adopt winning bidding strategies to maximise their revenues, limit their risk taking and identify the best available opportunities on the spot markets.
Soleka provides innovative forecasting methods which are developed by Reuniwatt and based on the treatment of raw satellite images. These forecasts convey a clear competitive knowledge advantage to energy traders who integrate them in their daily transactions.
Our Key Account Manager, Etienne Buessler, was interviewed by Engerati during the last EMART Energy show in November 2015 in Barcelona. In his interview, he gives a detailed explanation of the importance of solar power forecasts for energy trading: