Weather stations:

Providing business
critical information

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As a nation, the U.S. consumes seven percent of the globes energy, making it the largest energy
user in the world by a considerable margin.
Weather greatly impacts this number. Building, utility and operations managers use weather
forecasts to make real-time decisions that ultimately add or shed load on the grid. Inaccurate
weather forecasts can increase the amount of energy put on the grid, and in turn increase a
companys spending for the unneeded production, consumption or generation of energy.
To combat this waste of energy, scalable, local weather stations enable hyper-local, point-based
forecasts that allow companies to make informed, business-critical decisions. These decisions
ultimately help decrease the amount of energy consumed.
Commonly available weather forecasts for a specific location are
generalized for a larger geographical area. For example, the weather
forecast for New York City may be inclusive of Brooklyn, Queens and
Manhattan even though they are spread out over a number of miles
over varying terrain and experience different temperatures and levels of
precipitation at various times.
In fact, these weather forecasts are gathered by national weather stations
commonly found at airports, which are often miles outside the city.
Moreover, these forecasts usually combine the weather each city or
town might experience throughout an entire day, without any specificity
around the time and location of each weather event.

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This information is often ineffective for many

weather-dependent businesses, as generalized
forecasts lack the precise information they need
to make informed decisions. To exemplify just
how important weather forecasts are, large
power utilities can save more than half a million
dollars a day when the temperature forecast
accuracy is improved by a mere half a degree.

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Hyper-local forecasts that can take into account sudden changes in

the local weather, and are specific to a single latitude and longitude
location, are made possible through local weather stations, such as the
Schneider Electric WeatherSentry Weather Station. Weather stations range
in sophistication, accuracy and cost, and the WeatherSentry Weather
Station is designed for scalability, making it the ideal choice for any
middle- to high-end scope and application.

Hyper-local forecasts
There are a multitude of factors that affect weather at a specific location.
Altitude, topography and foliage are just some of the factors that could
differ dramatically between the location using weather forecast information
and where the nearest weather station is that is driving that forecast. This
can affect temperature, precipitation (including the percent likelihood,
type, and amount of precipitation), wind speeds and directions, sunlight
exposure, and possibly the occurrence of hazardous weather conditions.
For any professional making weather sensitive decisions, which could
range from renewable energy generation forecasting to public safety, these
factors are critical. It may not only be the difference in thousands of dollars
of expense, but in some cases could save lives.

Figure 1
General forecast areas experience a multitude of weather
conditions. The image above illustrates two points that are
within a general forecast area, separated by a distance of
less than 10 miles. However, the two points have a 14 degree
temperature difference. This is why point-based, hyper-local
forecasts are needed to ensure weather forecasts are accurate.

Hyper-local forecasts are point-based, and are for a specific location

and time. These precise forecasts help utility, operations and building
managers make more informed, real-time decisions regarding their
infrastructure, while also impacting the accuracy of utilities
energy-demand load forecasting.

Why utilities need precise weather information

Utilities rely heavily on weather forecasts, as weather is the single biggest
driver of energy consumption. As a nation, the U.S. consumes seven
percent of the globes energy, with the majority of that consumption
attributing to lighting, heating and cooling. Thus, temperature forecasts are
one of the most valuable pieces of information, if not the most, for utilities
as they greatly affect electric and natural gas load forecasts.

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Sudden, even minuscule, changes in the temperature can severely impact

the amount of energy utilities need to generate and provide. In fact, up
to 90 percent of errors in load forecasts are the result of a poor weather
forecast. Because utilities buy and sell energy days before they actually
need it, the price of purchasing energy the day its needed comes with a
hefty penalty. Utilities need weather stations to provide the most accurate
temperature forecast across their service area, not just one territory,
allowing them to model and predict exactly how much energy theyll
need to provide to all consumers.

The importance of
forecast accuracy
Large power utilities can save more than
half a million dollars a day when the
temperature forecast accuracy is
improved by a mere half a degree.

Thats because a utilitys topography and geography can differ greatly

across its service area. Service areas often span various elevations,
and those in close proximity to lakes and oceans have microclimates.
With different elevations and climates come varying temperatures and
precipitation. Hyper-local forecasts driven by local weather stations ensure
utilities know what weather will affect a specific point of their service area
up to the minute and throughout the entire day, up to 72 hours in advance.
They also can determine if high winds or rain will hit a portion of their
service area, while other areas will be hit with ice and snow. This allows
utilities to plan for outages before they happen and understand where their
pain points will be.
Weather stations also can improve Energy Event Index (EEI) forecasts,
which are tailored to a utilitys service area or locations of key infrastructure,
and are used to prioritize outage management. An EEI forecast will be
generated based on the weather stations in that area, and will calculate
risk-factors: Where is the most severe weather going to be? How can
utilities prepare for possible power outages? The EEI zones are assigned
a one-to-five rating based on the level of weather conditions expected in
each area, as well as a color coding index that prioritizes a specific service
area for utility management purposes when determining outage response.
These indices are most accurate when used in conjunction with hyper-local
forecasts, which in turn are improved with local weather stations.

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How hyper-local forecasts impact building energy usage

In the U.S., residential and commercial buildings account for 39 percent
of energy demand. Up to one third of that usage derives from heating and
cooling alone. This number is highly dependent on weather, and could be
lowered with accurate, precise forecasts.
Because weather varies all the time, building management systems (BMS)
can use weather forecasts to predict the energy needs required to keep
buildings at a roughly consistent temperature. The colder the outside air
temperature, the more energy it takes to heat a building. Thus, the amount
of energy used to heat the building will vary depending on the outside
air temperature.
Sophisticated BMS use forecasted temperature data and other factors,
such as human occupants and equipment that give off their own heat,
to predict the buildings energy needs. BMS can then make informed
decisions to construct a strategy to meet those needs, as far as how much
energy needs to be created or purchased to meet desired temperatures,
using the cheapest energy available.

39% 90%
In the U.S., residential

Up to 90 percent of errors in

and commercial buildings

load forecasts are the result

account for 39 percent of

of a poor weather forecast.

energy demand.

Scalable, local weather stations

enable hyper-local, point-based
forecasts that allow companies to
make informed decisions.

For example, large universities and hospitals will chill water or make ice
at night when energy is cheap, rather than during the day when energy is
most expensive. The buildings then use the cold water or ice to keep the
buildings cool during the next day. Accurate forecasts will inform a BMS on
just how much cold water or ice to create, then enable to BMS to create it
when energy is cheap. If there is a short-fall in the amount of chilled water
or ice available during the heat of the day, the BMS will have to consume
energy to create more ice or chilled water at a time when electrical energy
is the most expensive.
Accurate weather data can positively impact the efficiency and
performance of BMS by more than 25 percent. By adding a weather station
to the top of a building or parking lot, or attaching it to an object, such as
an electrical pole, BMS can get a more sophisticated, accurate view of the
weather affecting the building and further improve building efficiency.

Utilizing local solar forecasts

Solar is the most abundant renewable energy source available but the
ability to harness and distribute it alongside existing sources of energy is
new territory for many utilities. It isnt easy to control from the perspective of
grid operators who need to balance electricity supply and demand at all
times as not only the amount of power generated is variable based on
weather, but also the timing of when the generation will come onto the grid.
With solar energy, there is no on or off button, and grid operators must
accept the solar energy generated.
However, with the right type of weather information, solar power can be
more predictable, and therefore less disruptive to the grid.

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December 2015 | 5

Solar farms can use one weather station to provide a hyper-local forecast
specific to the area to determine when the solar panels will capture energy
from the sun. Buildings with solar panel installations also generate energy
for their surrounding area with the use of distributed micro-grids. To
maintain a stable and efficient grid, it is extremely important for utilities to
have accurate solar weather forecasts combined with Advanced Distributed
Management Systems (ADMS). An ADMS receives real-time forecasts from
weather stations at each distributed micro-grid that it then pulls into its
model to predict how much solar power each grid will produce, and when.
An ADMS uses the forecasts to help ensure that the load and supply of
power stays balanced. When utilities have to make real-time decisions
regarding whether or not to shed load, they can rely on the predictable
information derived from ADMS, which collects the real-time output of
power from all distributed solar micro grids, and combines that data with
all solar forecasts to generate the total output of solar power expected.

Hyper-local forecasts
Hyper-local forecasts are point-based, and
are for a specific location and time. These
precise forecasts help utility, operations
and building managers make more
informed, real-time decisions regarding
their infrastructure, while also impacting
the accuracy of utilities energy-demand
load forecasting.

Additionally, each micro-grid needs a weather station to provide a

hyper-local solar forecast, as it allows grid operators to see the predicted
solar power from each micro-grid, and then manage the balance of power
most effectively. A local weather station includes one or two solar energy
sensors, which when installed alongside a distributed micro grid, gives grid
operators a granular view of energy generation due to either or both Global
Horizontal Irradiance (GHI) and plane of array (POA) measurements. These
allow forecasts to better predict energy generation in that specific area,
rather than using a weather station for such predictions that could be as
far as 10 miles away, or more.
There is another use for micro-grids, and that is from the facility
managements point of view. In the above examples, the context was from
that of a large grid operator, but companies that invest in installing an
energy micro-grid on their facility will want to know they are using it in the
most efficient manner. Demand Side Management (DSM) and Demand
Side Operations (DSO) systems make real-time decisions on which energy
source to use, whether its the grid, local solar, wind, local geothermal,
etc., what to do with it, whether to power the facility, store it or sell it. These
decisions must take into account current and future conditions, and as
these systems become more sophisticated, a hyper-local weather forecast
is a crucial input parameter.
Ultimately, weather stations provide hyper-local accurate weather
information. Even though organizations may install a weather station for
a specific reason right now, doesnt mean it cannot be used for multiple
business cases in the future.

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December 2015 | 6

Decrease energy consumption

Weather dependent businesses have long relied on generalized, inaccurate
weather forecasts to make business critical decisions. This information
directly relates to the utility, buildings and solar industries decreased
bottom lines due to their purchase, generation or consumption of energy
that was never needed, or was done so at the least efficient times. This
inaccurate information can also be directly attributed to a portion of energy
consumption in the U.S. that goes unused.
Reversing this trend, weather stations enable businesses to make smarter
decisions when it comes to energy consumption and generation using
hyper-local forecasts. No longer will utilities have to purchase extra
generation the day its needed, as their temperature data will be specific to
their service area leaving little room for error. No longer will buildings face
a guessing game of temperatures, as weather stations will enable building
management systems to understand future weather patterns. Rather than
solar energy going to waste, weather stations can predict when and how
much energy will come onto the grid at every hour, every day. Demand Side
Management systems will allow facility owners to make the most informed
decisions regarding the energy its facilities are creating and consuming.

25%

Accurate weather data can

positively impact the efficiency and
performance of building management
systems by more than 25 percent

Utilities rely heavily on weather

forecasts, as weather is the single
biggest driver of energy consumption.

Hyper-local forecasts will help weather dependent businesses and the U.S.
reduce the amount of money spent on generating energy, and ultimately,
decrease overall energy consumption.
Now, the question is, how will you use weather stations to offset your
businesss wasteful energy usage?

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December 2015 | 7

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Omaha NE 68114
Tel: 800-610-0777
Fax: 402-255-8125
www.schneider-electric.com

December 2015
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