The Western Energy Imbalance Market (EIM) is a real-time wholesale trading market that revolutionizes the buying and selling of energy across the western United States. With renewable energy sources becoming increasingly important in the energy mix, participants require reliable forecasting services to meet readiness requirements and optimize their operations. In this article, we will delve into the crucial role of forecasting within the EIM and how our Variable Energy Resource (VER) Forecasting services help participants make informed decisions to increase reliability at the lowest cost.
Understanding the Western EIM
The Western EIM provides a platform for participants, including utilities and renewable energy producers/off-takers, to trade energy across multiple markets and balancing areas. The energy demand in these areas creates alignment between the demand for electricity and the available wind and solar resources from the renewable plants that otherwise would have only been able to sell into a single market where the demand/supply could be less advantageous. As renewable energy sources such as wind and solar are inherently variable, participants must navigate the fluctuating power supply to deliver electricity reliably and economically. This requires long-range analyses of how renewable energy impacts the grid’s reliability, cost and operation.
The importance of forecasting
VER Forecasting services from UL Solutions play a vital role in empowering participants with accurate information. With over 35 years of experience, we are proud to be the chosen provider for over 45% of current Western EIM participants. Our customer centric approach offers 24/7 availability and customizable services that meet a wide range of needs and technical requirements. Our forecasting reliability and accuracy consistently exceed customer expectations, even in competitive scenarios when timeliness and precision matter most.
Western EIM membership
Reduces the amount of costly reserves utilities need to carry
Achieves more efficient use of the regional transmission system and better grid reliability
Lowers carbon emissions and increases the use of renewable energy
Meeting the requirements
To function within the Western EIM, utilities and other participants must demonstrate their commitment to delivering power reliably and cost effectively with forecasting services that meet the California Independent System Operator (CAISO) requirements. Our services provide participants valuable insights into when they should rely on renewable resources like wind and solar and when they should draw power from other sources such as natural gas, nuclear or coal. This strategic decision-making capability contributes to the grid’s overall reliability and optimizes costs.
Financial benefits of participating
Participating in the Western EIM presents enormous financial benefits to renewable energy producers and offtakers. Our forecasting services enable participants to make informed decisions, helping them maximize profits and reduce costs. Since the launch of the Western EIM in 2014 through the first quarter of 2024, our regional customers have saved from $19 million to almost $1 billion (USD), highlighting the tremendous value that can be achieved through integration with the Western EIM1. As the Western EIM evolves with the creation of the Extended Day-Ahead Market (EDAM) and beyond, UL Solutions is poised to help our customers realize the reliability, economic and environmental benefits of future market advancements.
UL Solutions: Your trusted forecasting partner
The Western EIM has transformed the energy trading landscape, providing an avenue for renewable energy producers/offtakers to deliver power reliably and cost effectively to their customers. Our VER Forecasting services ensure that participants remain at the forefront of informed decision-making. By utilizing accurate and reliable forecasts, participants can confidently navigate the fluctuations of renewable energy sources, optimize their operations and contribute to the electricity grid’s stability. As a trusted and experienced provider, we strive to deliver superior renewable power forecasting services to help you unlock the full financial potential of this evolving market.
1Savings benefit of UL Solutions forecast customers based in the WEIM and calculated from the source website. https://www.westerneim.com/Pages/About/QuarterlyBenefits.aspx
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