Every day, the U.S. electricity-generating industry decides how to meet the electricity demand anticipated over the next 24 h. Various generating units are available to meet the demand, and each unit may have its own production lead time, start-up cost, and production cost. Total costs can be minimized if electricity demand is accurately forecast. Accurate demand forecasts, in turn, depend on accurate temperature forecasts.This paper estimates the cost savings (i.e., benefits) attributable to temperature forecasts used by the U.S. electricity-generation industry. It does this by establishing the relationship between the quality of temperature forecasts and the quality of electricity demand forecasts at six sites around the United States. It then draws on earlier work by Hobbs et al. on the relationship between the quality of demand forecasts and production costs to estimate the percentage of cost savings from different temperature forecasts. Finally, these cost savings are extrapolated to estimate the total benefits, and incremental benefits, for the United States as a whole.The total benefits of U.S. National Weather Service (NWS) forecasts are estimated to be 166 million. The additional benefits potentially obtainable from a perfect temperature forecast are 75 million per year. It is estimated that an incremental 1 improvement in the forecast quality (from the current NWS forecast) would be worth an additional 1.4 million per year. These numbers do not include other possible benefits of forecasts to the electricity industry, such as those from the improved scheduling of plant maintenance.
Bulletin of the American Meteorological Society – American Meteorological Society
Published: Dec 1, 2005
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera