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Energy

Wind production forecasting & market arbitrage

Client · Renewable energy producer · 4.5 GW capacity

A 72-hour wind production forecasting system combined with an arbitrage engine across spot, intraday and ancillary services markets — generating €12M/year additional market revenue.

01

Challenge

  • Forecast errors causing significant balancing costs on the regulated market.
  • Public weather models insufficient for turbine-by-turbine forecasting (terrain, wake effects).
  • Historically deterministic market placement, not capturing intraday market value.
  • Increased electricity price volatility requiring stronger operational reactivity.
02

Solution

  • Hybrid forecasting model: weather ensemble (ECMWF, AROME) + ML model (Temporal Fusion Transformer) correcting biases turbine-by-turbine.
  • Backtesting platform allowing traders to simulate placement strategies on 5 years of history.
  • Stochastic optimization engine recommending the optimal split between D-1 spot, intraday and reserves.
  • Integration with trading systems (ETRM) for a forecast → recommendation → order cycle in under 15 minutes.
03

Business impact

  • −28% MAE on 24h forecast vs. baseline.
  • +€12M/year additional market revenue on the 4.5 GW portfolio.
  • −35% balancing cost vs. historical strategy.
  • Platform extended to solar PV in year 2.

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