Economics Study Calculates More Accurate Wind Forecasts Net $150 Million in Energy Savings Every Year

As wind energy occupies an increasingly large share of the energy landscape, a new study by Colorado State University economists and the National Oceanic and Atmospheric Administration shows that more accurate wind forecasts over the last decade have netted consumers over $150 million per year in energy savings.

The study, published in the Journal of Renewable and Sustainable Energy, is based on NOAA’s High Resolution Rapid Refresh model, which provides hourly updated weather forecasts, including wind speed and direction data, for every part of the United States. Every few years, NOAA releases an updated HRRR model to the National Weather Service, while working on the next update at the same time.

Utilities must be able to predict wind patterns accurately and far in advance to determine how much additional energy they must produce from other sources. A bad prediction can cost the utility a lot of money, and those costs are then passed on to consumers. Conversely, a good prediction can result in substantial savings for those same customers.

Read more at: Colorado State University

Increasingly accurate wind forecasts have been providing consumers with about $150 million in energy savings each year. (Photo Credit: NOAA)