Market Value and Agents Benefits of Enhanced Short-Term Solar PV Power Generation Forecasting

Abstract

Renewable energy sources such as PV solar or wind power are intermittent and non-dispatchable. Massive integration of these resources into the electric mix poses some challenges to meeting power generation with demand. Hence, improving power generation forecasting has raised much interest. This work assesses the market value of enhanced PV solar power generation forecasting. Then, we analyse the different agents present in the electricity system. We link the studied agents to the proposed market values based on both analyses. Improving the accuracy of RES forecasting has massive potential as the sector grows and new agents arise. It can have reactive values like reducing imbalances or proactive values such as participating in intraday markets or exercising energy arbitrage. However, accurate forecasting can also lead to opportunistic values that can be exploited by malicious agents if they are not adequately regulated.