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All sourcesNASA NTRSDOE OSTI
DOE OSTI2024

Solar and Wind Forecast Error Reserve Sharing in a Multi-Utility Region

As electricity systems transition to higher levels of solar and wind generation, electric system operators will likely need to hold additional reserves to manage solar and wind forecast error. Because solar and wind forecast errors tend to be weakly correlated across space, system operators can reduce their reserve requirements by sharing reserves. This paper examines the benefits of forecast error reserve sharing among balancing areas in the Southeastern United States, in scenarios in which solar and wind generation ranges from 34% to 65% of total generation. It finds that day-ahead forecast error reserve requirements increase linearly with growth in solar and wind generation capacity (6%-10% of total capacity), but that reserve sharing can significantly reduce these requirements (by 6%-29%). It finds that, in economic terms, the value of forecast error reserve sharing ($\$$0.09-$\$$1.24 billion per year, $\$$0.12-$\$$1.68/MWh of load across scenarios) tends to decline with higher levels of solar and wind generation, due to lower reserve and energy prices. Even with declines in reserve prices, forecast error reserve sharing can still provide substantial value, though with higher levels of solar, wind, and electricity storage this value is increasingly tied to avoiding scarcity prices.

14 SOLAR ENERGY↗
DOE OSTI2024

Solar and Wind Forecast Error Reserve Sharing in a Multi-Utility Region

As electricity systems transition to higher levels of solar and wind generation, electric system operators will likely need to hold additional reserves to manage the forecast error associated with these resources. Because wind and solar forecast errors tend to be poorly correlated across space, system operators can reduce their reserve requirements by sharing reserves. This paper examines the value of forecast error reserve sharing among balancing areas in the Southeast United States. It finds that forecast error reserve requirements increase linearly with growth in solar and wind generation capacity but that reserve sharing can significantly reduce physical (MW) reserve requirements (from 25%-26% to 18%-19% of average load in high solar scenarios). It finds that the value of forecast error reserve sharing declines with higher levels of solar and wind generation, due to lower wholesale energy and reserve prices. Even with declines in wholesale prices, forecast error reserve sharing can still provide substantial value (as much as $\$$400 million per year in a high solar scenario), though with higher levels of solar, wind, and electricity storage, this value is increasingly tied to avoiding scarcity prices. The results suggest the importance of coordinated capacity expansion planning for forecast error reserve sharing.

14 SOLAR ENERGY↗
DOE OSTI2021

Utilizing physics-based input features within a machine learning model to predict wind speed forecasting error

Machine learning is quickly becoming a commonly used technique for wind speed and power forecasting. Many machine learning methods utilize exogenous variables as input features, but there remains the question of which atmospheric variables are most beneficial for forecasting, especially in handling non-linearities that lead to forecasting error. This question is addressed via creation of a hybrid model that utilizes an autoregressive integrated moving-average (ARIMA) model to make an initial wind speed forecast followed by a random forest model that attempts to predict the ARIMA forecasting error using knowledge of exogenous atmospheric variables. Variables conveying information about atmospheric stability and turbulence as well as inertial forcing are found to be useful in dealing with non-linear error prediction. Streamwise wind speed, time of day, turbulence intensity, turbulent heat flux, vertical velocity, and wind direction are found to be particularly useful when used in unison for hourly and 3 h timescales. The prediction accuracy of the developed ARIMA–random forest hybrid model is compared to that of the persistence and bias-corrected ARIMA models. The ARIMA–random forest model is shown to improve upon the latter commonly employed modeling methods, reducing hourly forecasting error by up to 5 % below that of the bias-corrected ARIMA model and achieving an R 2 value of 0.84 with true wind speed.

17 WIND ENERGY↗
DOE OSTI2023

Impacts of hybridization and forecast errors on the probabilistic capacity credit of batteries

Battery storage is increasingly identified as being among the least-cost mix of technologies in the evolving U.S. electricity mix. This study explores the marginal capacity credit of batteries using a probabilistic, reliability-based, effective firm capacity method, which we apply for multiple battery power ratings, durations, coupling types, deployment locations, and dispatch profiles within a test system that is based on the Texas Interconnection in the year 2024. We find that the capacity credits for all battery durations depend on their ability to predict the timing of reliability events. Even 1-2 h forecast errors - resulting in early or delayed battery discharging relative to the onset of a reliability event - lead pronounced capacity credit reductions, especially for 4-h duration batteries. Coupling batteries with solar mitigates the uncertainty associated with a shorter-duration battery's availability during reliability events, primarily due to the relatively high solar capacity credit in our test system. Coupled (or hybrid) system designs with oversized solar arrays, the ability to charge the coupled battery with grid energy, and larger batteries lead to the greatest capacity credit benefits of hybridization. We do not see evidence that the hybrid capacity credit exceeds the sum of the separate battery and solar capacity credits.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2025

Techno-economic implications and cost of forecasting errors in solar PV power production using optimized deep learning models

Accurate solar Photovoltaic (PV) power forecasting is important for enhancing both the performance and economic feasibility of PV systems. This study evaluates several deep learning models, including Dense Neural Networks (DNN), Long Short-Term Memory (LSTM), Convolutional Neural Networks (CNN), and a hybrid LSTMCNN model, for predicting PV power production one day in advance. Prior to optimization, the models exhibited relatively high errors, with the best model (DNN) achieving a Root Mean Square Error (RMSE) of 31.13 kW and a coefficient of determination (R 2 ) of 62.15 %. After employing Bayesian optimization, the LSTM-CNN model demonstrated the best performance, with the RMSE reduced to 9.79 kW and R 2 improved to 97.62 %, showcasing significant enhancement in predictive accuracy. Here, the economic evaluation considered three cases: rewards for underestimation (0.08 USD/kWh), no rewards, and penalties for both over-and underestimation (120 % of the utility tariff). In the rewards scenario, the LSTM-CNN model reduced the Levelized Cost of Electricity (LCOE) by 4 %, while in the penalty scenario, a backup diesel generator would have increased the LCOE by 49 %. Additionally, the LSTM-CNN model minimized financial losses, achieving the lowest penalties and maximizing net cash flow compared to other models, demonstrating its overall technical and economic superiority.

Deep learning↗
DOE OSTI2023

Impacts of Dispatch Strategies and Forecast Errors on the Economics of Behind-the-Meter PV-Battery Systems

To assess the economic value of batteries in hybrid PV-battery systems, one must create a dispatch profile for the battery. Many analyses of battery value assume perfect forecasts of PV generation and load, determining an upper limit on the value of the battery. Prior work that accounts for forecast uncer- tainty often does so in the context of a single dispatch algorithm, which does not provide a baseline for comparison. Furthermore, when multiple dispatch algorithms are assessed with uncertainty, the benefits considered are for diesel generation in a microgrid, not retail rate savings. This work addresses the gaps in the literature by comparing the performance of both heuristic and optimal dispatch algorithms for retail rate savings under forecast uncertainty, and provides comparisons of the robustness of these algorithms and their associated estimates of economic value. We find that using a perfect forecast can overestimate the value of hybrid PV-battery systems between 1% and 8% compared to the reality of using a day-ahead forecast, depending on the dispatch algorithm used. Thus, accounting for forecast uncertainty in system design and analysis will significantly improve the accuracy of modeled system values.

batteries↗
DOE OSTI2023

Impacts of Dispatch Strategies and Forecast Errors on the Economics of Behind-the-Meter PV-Battery Systems

To assess the economic value of batteries in hybrid PV-battery systems, one must create a dispatch profile for the battery. Many analyses of battery value assume perfect forecasts of PV generation and load, determining an upper limit on the value of the battery. Prior work that accounts for forecast uncertainty often does so in the context of a single dispatch algorithm, which does not provide a baseline for comparison. Furthermore, when multiple dispatch algorithms are assessed with uncertainty, the benefits considered are for diesel generation in a microgrid, not retail rate savings. This work addresses the gaps in the literature by comparing the performance of both heuristic and optimal dispatch algorithms for retail rate savings under forecast uncertainty, and provides comparisons of the robustness of these algorithms and their associated estimates of economic value. We find that using a perfect forecast can overestimate the value of hybrid PV-battery systems between 1% and 8% compared to the reality of using a day-ahead forecast, depending on the dispatch algorithm used. Thus, accounting for forecast uncertainty in system design and analysis will significantly improve the accuracy of modeled system values.

batteries↗
DOE OSTI2023

Impacts of Dispatch Strategies and Forecast Errors on the Economics of Behind-the-Meter PV-Battery Systems: Preprint

To assess the economic value of batteries in hybrid PV-battery systems, one must create a dispatch profile for the battery. Many analyses of battery value assume perfect forecasts of PV generation and load, determining an upper limit on the value of the battery. Prior work that accounts for forecast uncertainty often does so in the context of a single dispatch algorithm, which does not provide a baseline for comparison. Furthermore, when multiple dispatch algorithms are assessed with uncertainty, the benefits considered are for diesel generation in a microgrid, not retail rate savings. This work addresses the gaps in the literature by comparing the performance of both heuristic and optimal dispatch algorithms for retail rate savings under forecast uncertainty, and provides comparisons of the robustness of these algorithms and their associated estimates of economic value. We find that using a perfect forecast can overestimate the value of hybrid PV-battery systems between 1% and 8% compared to the reality of using a day-ahead forecast, depending on the dispatch algorithm used. Thus, accounting for forecast uncertainty in system design and analysis will significantly improve the accuracy of modeled system values.

batteries↗
DOE OSTI2022

Smoke from 2020 United States wildfires responsible for substantial solar energy forecast errors

Abstract The 2020 wildfire season (May through December) in the United States was exceptionally active, with the National Interagency Fire Center reporting over 10 million acres ( > 40 000 km 2 ) burned. During the September 2020 wildfire events, large concentrations of smoke particulates were emitted into the atmosphere. As a result, smoke was responsible for ∼10%–30% reduction in solar power production during peak hours as recorded by the California Independent System Operator (CAISO) sites. In this study, we focus on a 9 d period in September when wildfire smoke had a profound impact on solar energy production. During the smoke episodes, hour-ahead forecasts utilized by CAISO did not include the effects of smoke and therefore overestimated the expected power production by ∼10%–50%. Here we use multiple observational networks and a numerical weather prediction (NWP) model to show that the wildfire events of 2020 had a significantly detrimental influence on solar energy production due to high aerosol loading. We find that including the contribution of biomass burning particles greatly improves the day-ahead solar energy bias forecast of both global horizontal irradiance and direct normal irradiance by nearly ∼50%. Our results suggest that a more comprehensive treatment of aerosols, including biomass burning aerosols, in NWP models may be an important consideration for energy grid balancing, in addition to solar resource assessment, as solar power reliance increases.

14 SOLAR ENERGY↗
DOE OSTI2023

Energy management systems for forecasted demand error compensation using hybrid energy storage system in nanogrid

This paper proposes an energy management system (EMS) for nanogrids to balance the power supply and forecasted demand in consideration of forecasting errors arising from high instantaneous demand. The proposed EMS employs a power-balancing optimization process for forecasted demand and a reference power modulation strategy for forecasting errors. This power-balancing optimization utilizes nanogrid sources, such as photovoltaics, fuel cells, and batteries, to meet forecasted demand and a supercapacitor charging process to overcome issues with a low energy density. The proposed reference power modulation strategy is utilized to allocate power from a hybrid energy storage system consisting of a battery and supercapacitor in order to compensate for forecasting errors. In addition, this proposed strategy considers battery and supercapacitor constraints such as the power changing rate and total power limitations. Further, the power-balancing optimization process also operates at faster sampling rate than the reference power modulation process in order to improve the computational efficiency. The performance of the proposed EMS is evaluated using real data obtained from the Korea Electric Power Exchange.

25 ENERGY STORAGE↗
DOE OSTI2025

Getting brighter: Impacts of improved day-ahead solar forecasts in high-solar, high-storage electricity systems

This paper analyzes the impacts of improved day-ahead solar forecasts on costs and dispatch in the solar-rich Southeast U.S. It uses an optimized high-solar, high-storage resource portfolio in which solar generation capacity accounts for 45 % of total installed capacity (34 %–36 % of generation) and energy storage capacity (43 GW) is equivalent to 33 % of peak demand. In a base scenario, improved day-ahead solar forecasts reduce production costs by $\$87$ million per year ($\$0.13$ per MWh load, $2023$$). This level of savings is within the range or lower than earlier studies of solar forecast improvements at lower levels of solar generation (<25 % of total generation). In this study, solar expansion was accompanied by two important sources of flexibility for managing solar forecast error: energy storage and day-ahead solar curtailment. Furthermore, the analysis finds that regional coordination complements day-ahead solar forecast improvements while natural gas commitment flexibility is a substitute for forecast improvements, as the improved solar forecast leads to sub-optimal commitment of thermal units. Day-ahead solar forecast improvements reduce reserves required to manage forecast error by 30 %. Fewer reserves to manage large, infrequent solar forecast errors could be an important benefit of improved solar forecasts.

14 SOLAR ENERGY↗
DOE OSTI2022

An Analysis of PNM's Renewable Reserve Requirements to Meet New Mexico's Decarbonization Goals

Over the next three years, the Public Service Company of New Mexico (PNM) plans to increase utility-scale solar photovoltaic (PV) capacity from today’s roughly 330MW to about 1600MW. This massive increase in variable generation—from about 15% to 75% of peak load—will require changes in how PNM operates their system. We characterize the 5 and 30-minute solar and wind forecast errors that the system is likely to experience in order to determine the level of reserves needed to counteract such events. Our focus in this study is on negative forecast error (in other words, shortfalls relative to forecast) – whereas excess variable generation can be curtailed if needed, a shortfall must be compensated for to avoid loss of load. Calculating forecast error requires the use of the same forecasting methods that PNM uses or a reasonable approximation thereof. For wind, we use a persistence forecast on actual 5-minute 2019 wind output data (scaled up to reflect the amount of wind capacity planned for 2025). For solar, we use a formula incorporating the clear sky index (CSI) for the forecast. As the solar on the grid now is a small fraction of what is planned for 2025, we generated 5-minute solar data using 2019 weather inputs. We find that to handle 99.9% of the 5-minute negative forecast errors, a maximum of 275MW of variable generation reserve during daylight hours, and a maximum of 75MW during non-daylight hours, should be sufficient. Note that this variable generation reserve is an additional reserve category that specifies reserves over and above what are currently carried for contingency reserve. This would require a significant increase in reserve relative to what PNM currently carries or can call upon from other utilities per reserve sharing agreements. This variable generation reserve specification may overestimate the actual level needed to deal with PNM’s planned variable generation in 2025. The forecasting methodologies used in this study likely underperform PNM’s forecasting – and better forecasting allows for less reserve. To obtain more precise estimates, it is necessary to consider load and use the same forecasting inputs and methods used by PNM.

14 SOLAR ENERGY↗
DOE OSTI2026

The relative influences of hydrologic information and dams’ hydropower scheduling decisions on electricity price forecasts

Price dynamics in wholesale electricity markets are driven by supply and demand. In markets with hydroelectric dams, the timing and amount of hydropower offered can influence prices in similar ways to wind and solar power. Unlike variable renewable energy, however, the supply of hydropower in wholesale markets is a function of both water availability and operational decisions at dams. Dam operators maximize revenues in wholesale markets by aligning generation with the periods of highest expected prices, and these scheduling decisions may in turn influence prices. Here, we examine the relative importance of two types of information in predicting forward electricity prices: a) water availability at dams, in the form of short-to-medium-range hydrological forecasts; and b) hourly scheduling decisions at dams. Using softly coupled hydrologic, hydropower scheduling, and power systems models spanning the U.S. Western Interconnection, we quantify the importance of hydrologic forecast accuracy in correctly predicting wholesale electricity prices and compare this with the influence of dam operators’ own hourly scheduling decisions on realized market prices. We find that aligning hydropower generation schedules with the periods of high forecasted prices causes larger, inadvertent price forecast errors than imperfect hydrologic forecasts. This suggests that knowledge of how water is managed by dam operators within the week is more important than weekly inflow forecast errors when predicting forward electricity prices. Our findings have implications for optimal hydropower scheduling by region. Specifically, accounting for price effects is critical in markets dominated by hydropower capacity.

Electricity markets↗
DOE OSTI2023

Multi-layered Energy Management Framework for Extreme Fast Charging Stations Considering Demand Charges, Battery Degradation, and Forecast Uncertainties

To achieve a cost-effective and expeditious charging experience for extreme fast charging station (XFCS) owners and electric vehicle (EV) users, the optimal operation of XFCS is crucial. It is however challenging to simultaneously manage the profit from energy arbitrage, the cost of demand charges, and the degradation of a battery energy storage system (BESS) under uncertainties. This paper, therefore, proposes a multi-layered multi-time scale energy flow management framework for an XFCS by considering long- and short-term forecast uncertainties, monthly demand charges reduction, and BESS life degradation. In the proposed approach, an upper scheduling layer (USL) ensures the overall operation economy and yields optimal scheduling of the energy resources on a rolling horizon basis, thereby considering the long-term forecast errors. A lower dispatch layer (LDL) takes the short-term forecast errors into account during the real-time operation of the XFCS. Per the latest research, monthly demand charges can be as high as 90% of the total monthly bills for EV fast charging stations; to this end, this paper takes the first attempt at the reduction of demand charges cost by considering the trade-off between the energy cost and monthly demand charges. Contrasting literature, this work allocates an energy reserve in the BESS stored energy to deal with the impact of short-term forecast errors on the optimized real-time operation of the XFCS. Moreover, degradation modeling considers the trade-off between short-term benefits and long-term BESS life degradation. As a result, case studies and a comparative analysis prove the efficacy of the proposed framework.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2022

Machine Learning Derived Dynamic Operating Reserve Requirements in High-Renewable Power Systems

Accurately forecasting wind and solar power output poses challenges for deeply decarbonized electricity systems. Grid operators must commit resources to provide reserves to ensure reliable operations in the face of forecast errors, a process which can increase fuel consumption and emissions. We apply neural network-based machine learning to expand the usefulness of median point forecast data by creating probabilistic distributions of short-term uncertainty in demand, wind, and solar forecasts that adapt to prevailing grid conditions. Machine learning derived estimates of forecast errors compare favorably to estimates based on incumbent methods. Reserves derived from machine learning are usually smaller than values derived using incumbent methods, which enables fuel savings during most hours. Machine learning reserves are generally larger than incumbent reserves during times of higher forecast error, potentially improving system reliability. Performance is tested using multi-stage production simulation modeling of the California Independent System Operator (CAISO) system. Machine learning reserves provide production cost and greenhouse gas (GHG) emission reductions of approximately 0.3% relative to historical 2019 requirements. Savings in the 2030 timeframe are highly dependent on battery storage capacity. At lower levels of battery capacity, savings of 0.4% from machine learning reserves are shown. Significant quantities of battery storage are expected to be added to meet California's resource adequacy needs and GHG reduction targets. Addition of these batteries saturate reserve needs and results in minimal within-hour balancing costs in 2030.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2022

Assessing the WRF-Solar Model Performance Using Satellite-Derived Irradiance from the National Solar Radiation Database

Abstract WRF-Solar is a numerical weather prediction model specifically designed to meet the increasing demand for accurate solar irradiance forecasting. The model provides flexibility in the representation of the aerosol–cloud–radiation processes. This flexibility can be argued to make it more difficult to improve the model’s performance because of the necessity of inspecting different configurations. To alleviate this situation, WRF-Solar has a reference configuration to use as a benchmark in sensitivity experiments. However, the scarcity of high-quality ground observations is a handicap to accurately quantify the model performance. An alternative to ground observations are satellite irradiance retrievals. Herein we analyze the adequacy of the National Solar Radiation Database (NSRDB) to validate the WRF-Solar performance using high-quality global horizontal irradiance (GHI) observations across the contiguous United States (CONUS). Based on the sufficient performance of NSRDB, we further analyze the WRF-Solar forecast errors across the CONUS, the growth of the forecasting errors as a function of the lead time, and sensitivities to the grid spacing and the representation of the radiative effects of unresolved clouds. Our results based on WRF-Solar forecasts spanning 2018 reveal a 7% median degradation of the mean absolute error (MAE) from the first to the second daytime period. Reducing the grid spacing from 9 to 3 km leads to a 4% improvement in the MAE, whereas activating the radiative effects of unresolved clouds is desirable over most of the CONUS even at 3 km of grid spacing. A systematic overestimation of the GHI is found. These results illustrate the potential of GHI retrievals to contribute to increasing the WRF-Solar performance.

14 SOLAR ENERGY↗
DOE OSTI2025

Improving seasonal precipitation forecasts in the Western United States through statistical downscaling

Abstract Seasonal precipitation forecasts in the western United States are critical resources for water resource management, especially during winter. While current seasonal forecasting systems provide monthly precipitation forecasts operationally, their coarse resolution limits their effectiveness in capturing the localized precipitation patterns and snowpack conditions essential for water resource managers in the mountainous regions. Here, analog statistical downscaling is demonstrated as an effective approach to enhance the spatial resolution of operational seasonal forecasts provided by the North American Multi-Model Ensemble. Downscaling was performed by building an analog ‘library’, in which corresponding model forecasts and observed values during the training period were stored. In the testing period, unseen model forecasts referenced the closest historical forecast from the analog library and applied the corresponding observational value for each point. This analysis indicates that downscaled products can capture localized features more accurately than the original coarse resolution forecasts, reducing forecast error across the western United States. Moreover, downscaling individual ensemble members—rather than downscaling the ensemble mean—further reduces forecasting error for their multi-model ensemble mean products. The greatest error reductions in the downscaled product, measured by root mean squared error (RMSE), were observed at low to mid-elevations (500–2000 meters), with 50%–70% improvement relative to the original forecasts. In the higher elevations (2000 meters and above), changes in RMSE relative to the original forecast were limited to 10%–30% improvements. The improvement is more substantial for forecast systems with 10 ensemble members compared to that with 4 members, but this relationship does not hold for the system with 24 ensemble members. These findings show that analog statistical downscaling can effectively address the spatial limitations of seasonal precipitation forecasts with minimal computational cost, providing a valuable framework for enhancing coarse resolution forecasting products while providing insights into the timing of ensemble mean calculations during the downscaling process.

Vernon, B. (ORCID:0009000891670689)↗