HydroForecast earns customers more revenue per MW

Utilities are balancing decarbonization goals with cost efficiency while navigating volatile energy markets. In California ISO (CAISO), for example, where imbalance penalties are costly, accurate streamflow forecasts are critical for hydropower operators to optimize operations and maximize revenue.

HydroForecast: AI-powered inflow forecasts

HydroForecast leverages advanced AI to deliver highly accurate, adaptable inflow forecasts. HydroForecast complements traditional models by adapting to changing climatic conditions, reducing forecast errors, and improving decision-making.

Case study: HydroForecast improves financial performance in CAISO

To quantify the financial benefits of improved inflow forecasting, we analyzed a real-world deployment of HydroForecast for multiple customers in Northern California, comparing its performance against NOAA's River Forecast Centers, the widely used alternative. Over four years (2020–2024), we evaluated inflows, market prices, and penalties across CAISO hydropower sites.

Key findings:

• 33% reduction in day-ahead forecast errors compared to NOAA benchmarks
• $6,800 per MW per year in additional revenue from improved accuracy
• Significant reduction in costly imbalance penalties, ensuring greater market competitiveness

By improving forecast accuracy, HydroForecast allows operators to optimize bidding strategies, reduce costly imbalance penalties, and increase revenue in CAISO’s competitive market.

The bottom line: Forecast accuracy drives profitability

CAISO hydropower operators face real financial consequences from forecast errors. HydroForecast minimizes these costs, ensuring greater operational efficiency and stronger financial performance.

Ready to maximize hydropower revenue? Contact our team to see how HydroForecast can optimize your operations.