Power trading profits can be substantial when an energy meteorologist brings unique insight to the trading desk about the likelihood of an upcoming extreme event.
Those unique insights can come from the same data everyone has, but require rigorous meteorological science, historical data, and analytical effort.
The World Climate Service creates opportunities for energy meteorologists to generate those unique insights that drive trading profits.
Today’s 00Z ECMWF Extended weather regime forecast shows how this works just beyond the medium range.
The forecast transitions through several Euro Atlantic regimes before uncertainty increases substantially in the subseasonal period.
Regime probabilities are helpful, but they become more valuable when paired with a historical analysis of regime impacts.
We combined two long meteorological histories to investigate that relationship. The process is:
1) We used nine years of historical forecasts from the World Climate Service Point in Time Weather Forecast Archive API to establish a climatology from ECMWF IFS 51 member capacity-weighted wind and solar forecasts for Germany.
2) From that forecast climatology, we developed a Dunkelflaute Risk Index, or DRI, defining an event when the combined wind and solar forecast falls below the 20th percentile. Those events are the orange dots in the graphic.
3) We then combined the DRI history with our archive of observed Grams seven regime classifications to understand how Dunkelflaute risk varies by weather regime.
The result provides a valuable way to interpret a subseasonal regime forecast.
The risks and opportunities embedded in the ensemble means everyone else is using can then be translated into differentiated risk intelligence for power and gas trading desks by connecting the probabilities of Atlantic Ridge, Scandinavian Blocking, European Blocking, or another circulation pattern with the likelihood of Dunkelflaute events embedded in each forecasted flow regime.
This does not remove the considerable uncertainty at subseasonal lead times, nor does a regime forecast determine whether a Dunkelflaute will occur.
It provides an additional layer of risk information just beyond the medium range, when the details of an individual weather scenario become increasingly uncertain, but the probabilities of large-scale circulation patterns can still provide useful information about upcoming weather risks.
That is where an energy meteorologist can add value. The forecast data are available to the market.
The meteorological science used to extract, combine, and communicate the embedded power market risk creates the differentiated insight. The World Climate Service helps energy meteorologists amplify their meteorological expertise.
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