Recommendations with accurate predictions are critical for informed decision-making and avoiding missed opportunities. Traditional models typically unable to handle the complexity and risk when estimating renewable energy generation output on a continuous basis.
Volatility without visibility is risky
Energy market data are more diverse and decentralized than ever. An overwhelming amount of information bombards energy traders daily in today’s market, with the sheer volume and complexity making uniting and analyzing the information quickly enough to anticipate market movements in time to capture value challenging.
Given the shortcomings of traditional models and static spreadsheets in estimating the impact of higher renewable generation on energy prices, many renewable energy traders are hesitant to use the DA market to help offset low real-time prices. When price volatility negatively impacts your operations, a lack of accuracy or timeliness in generation and price forecasts can result in significant financial losses, curtailing and missed opportunities.
A handful of merchant renewable operators participate in the DA market at the nodal level. Doing so requires either a favorable outlook on the DA vs. real-time price for passive participation or a reliable prediction of plant generation and the DA/real-time price spread for active participation.
DA trading, however, is nearly impossible without precise renewable generation and price predictions.
Enter GE Digital’s Alpha Trader for Merchant Renewable Operators
The unique solution leverages advanced AI/ML to produce generation and price predictions then combines them with a risk management approach matched to the customer’s risk profile. By utilizing cutting-edge tools like Alpha Trader to better predict wind and solar generation, energy traders and asset managers can optimize their investments’ economic value and offer into the DA market with greater confidence.
Below is an example examples of how a 250MW merchant wind farm in the U.S. could profit from active DA market participation.