Energy companies are facing growing costs as a result of the energy transition.
Here’s why: In the electricity system, production and consumption have to be equal at all times.
If the system is not in balance, the grid operator has to intervene. This results in extra costs. These so-called imbalance costs have to be paid by energy companies such as Eneco or Greenchoice.
To lower these costs, energy companies need to accurately forecast how much energy is produced and consumed, and at what time.
In the past, imbalance and corresponding costs used to be low. The demand side had a predictable pattern and the supply-side followed by directing fossil-fueled power plants.
Today, the world is more complex. Renewable energy sources are volatile and thus difficult to predict. Consumption patterns are changing because of electrification and decentral energy generation – such as residential solar and EV charging for example.
Traditional forecasting techniques are not able to cope with this complexity. Imbalance and imbalance costs are rising.
However, with innovative forecasting solutions energy companies can manage imbalance and get a grip on profitability. Our smart and accurate forecasting software allows energy companies to successfully shift towards a more sustainable energy portfolio.