Trading and Risk

Coronavirus Power Demand Destruction Forecasting 101

byRob Allerman

When the coronavirus power load demand destruction began appearing in Enverus Trading & Risk’s daily ISO load forecasts, our team had to quickly tackle a new set of realities.

Just like businesses all over the world, we were faced with never-before-seen scenarios as a result of the nationwide shutdowns. Our machine learning-based forecasting tools have never learned the demand dynamics at play—nor had our team. We put our heads together and quickly came up with a plan—and a way to measure the demand destruction for our customers.

First, a primer on our typical standard operating procedure: our machine learning models look at actual temperature and power demand data from previous days and weeks, learning as it goes. The models were built to respond to load growth or anything that may be happening in the market.

This presented a minor challenge. The model was suddenly forced to predict demand in a scenario where it had no historical data to compute. Our customers were understanding that it would take several days for the model to absorb new data and relearn the market. We had customers reach out and ask us how they can track the demand destruction underway.

The solution

We launched a new model that knows what the temperatures were for the load from February 2019 to February 2020. But it doesn’t know anything that’s been happening over the last month.

Below is the first look at the results of our study—just a few days since launch. Now that we are running those two load forecasts in parallel (one that’s learning the demand destruction, and one that isn’t) you will be able to see the difference between the two loads, and you can identify the level of demand destruction.

What’s happening in ERCOT, the Texas power market?

We have measured little to no demand destruction due to the coronavirus and governments implementing policies to reduce the virus in ERCOT. However, we are starting to detect some demand destruction over the last couple of days. When comparing similar pre-COVID-19 temperatures, we are detecting 1-3% demand destruction.

In NYISO, the New York power market, it’s a different story …

In NYISO, it’s a different story. We have detected demand destruction starting early last week. When comparing similar pre-COVID-19 temperatures, we are detecting 10-15% demand destruction.

Helping power market participants in a time of need

Power trading liquidity has fallen amid the uncertainty around the coronavirus pandemic. We’d like to offer you free access to this analysis in our twice-daily reports during this tough time.

We are all in this together, and we look forward to continuing to help power traders and analysts make the best decisions for their businesses, even in trying and uncertain times. Sign up here to get access to our new demand destruction load forecasts, which we are offering to you on a complimentary basis.

Picture of Rob Allerman

Rob Allerman

Rob Allerman is Senior Director of Power Analytics at Enverus. Before joining Enverus, Rob was Head of North America Power Analytics at EDF Power Trading in Houston, Texas, and spent many years as a power analyst at Deutsche Bank. Rob also worked in the western U.S. for nearly 10 years at Power Utilities and started his career as a Hydrologist for the Federal Government.

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content

bA
Energy Transition
ByBrynna Foley

Publicly traded independent power producers (IPPs) are poised for a significant shift as renewable energy continues to reshape the generation mix. Enverus Intelligence® Research’s latest report explores how evolving generation and price forecasts will impact IPP profitability. The retirement of...

Enverus Blog
Energy Transition
ByCarson Kearl, Enverus Intelligence® Research (EIR) Contributor

Enverus Intelligence® Research (EIR) and many others have published at length on the coming wave of load growth that starkly contrasts more than a decade of stagnation.

Enverus Intelligence® Research Press Release - Winning in the West: Renewed opportunities are resurfacing in the DJ and PRB’s Niobrara
Energy Analytics Financial Services
ByEnverus

In a landmark move within the Canadian energy sector, Whitecap Resources Inc. (WCP) and Veren Inc. (VRN) have announced a near merger of equals. This strategic combination, with a purchase price of C$8.6 billion (US$5.9 billion) for Veren inclusive of...

Enverus Intelligence® Research Press Release - OPEC+ cuts and Trump tariffs force price downgrade
Analyst Takes Trading and Risk
ByAl Salazar, Enverus Intelligence® Research (EIR) Contributor

The following blog is distilled from an interview on CBC’s “The Eyeopener,” hosted by Loren McGinnis who interviewed Enverus Intelligence® Research’s (EIR) very own Al Salazar. Click here to listen to the full radio segment.  Consequences for U.S. Shale and...

Enverus press release - Renewing Alberta’s path for renewables
Energy Transition
ByAdam Robinson, Enverus Intelligence® | Research (EIR) Contributor

Since 2020, the demand for Power Purchase Agreements (PPAs) has surged, driven by tax incentives, corporate clean energy goals, and increasing power needs.

Enverus Press Release - Alternative fuels M&A focus turns from policy boosts to business resilience
Power and Renewables
ByKatherine Paton-Ilse

Most projects that enter the interconnection queues never get built. The queues are growing increasingly crowded, and backlogs continue to persist across multiple ISOs.

energy-transition-research
Energy Transition
ByThomas Mulvihill

Enverus Intelligence® Research (EIR) has updated its long-term load forecast model, predicting a 30% increase in total U.S. power demand by 2050, down from the previous projection of 39%.

Enverus_Press_Release_EV_Regional_Volatility_Thumbnail
Power and Renewables
ByNatalia Opie Davila, Customer Success Lead at RatedPower

Solar panels can be coupled or linked to a battery either through alternating current (AC) coupling or direct current (DC) coupling. AC current flows rapidly on electricity grids both forward and backward. DC current on the other hand, flows only in...

Enverus/RatedPower Press Release - RatedPower publishes 2025 Global Renewable Trends Report examining the green landscape
Power and Renewables
ByNatalia Opie Davila, Customer Success Lead at RatedPower

Solar irradiance, the power of solar radiation measured in W/m2 — is an essential metric when designing a PV system. One of the most important factors to consider when designing a solar photovoltaic (PV) system is the level of solar...

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Register Today

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert