System, method and computer program product for risk-minimization and mutual insurance relations in meteorology dependent activities
View Patent ↗A system, method and computer program product for minimizing risks associated with meteorology dependent activity. Such activity may include operation of renewable power sources and the delivery of power output from those renewable sources for sale on a market. The system and method identify risks to market participants in the event of possible shortfall, and provide metrics and mitigation processes for addressing the risks before the contractual breaches occurs for failure to deliver power, or imbalances occurred in grid operations.
1. A method of translating meteorological forecast data to an operations data associated with providing electrical power produced from a renewable power generation facility to a power grid, comprising:
collecting meteorological factors that affect an amount of electrical power generated by the renewable power generation facility;
developing a meteorological forecast from said meteorological factors collected;
committing to deliver, by contract, at least a portion of a unit of power from said renewable power generation facility at a predetermined time coinciding with the meteorological forecast; and
developing a trading position for said unit of power based on an uncertainty in said meteorological forecast.
2. The method of claim 1 , further comprising:
calculating a financial risk associated with the commitment to deliver the unit of power at the predetermined time;
contrasting a cost associated with a risk of failure to deliver the unit of power at the predetermined time with a cost to mitigate said risk of failure; and
at least one of adjusting and not adjusting said trading position based on an uncertainty in a meteorological reforecast made with an update in said meteorological factors.
3. The method of claim 2 , wherein said trading position includes trading an option to offset said uncertainty in said meteorological reforecast.