In this podcast episode, we delve into the intricacies of power markets and energy forecasting with Tom Lemmens who has firsthand experience in the field. Starting his career at an energy company, our guest explains the complexities of short-term power markets, focusing on generation forecasting for wind and solar power, as well as price forecasting.

We learn about the crucial role of forecasting prices as a proxy for balancing the grid, and the importance of portfolio optimization in maximizing asset value. After transitioning from a data science consultant back to the energy sector, our guest became one of the early joiners at Dexter Energy, a company providing generation forecasting and trade optimization services.

Dexter Energy specializes in forecasting solar and wind power generation, along with short-term power prices, to help companies make informed trade strategies and optimize their assets. The guest highlights the significance of utilizing Python in their work and explains the process of translating data into expected power output using machine learning models.

Moreover, we explore the challenges and rapid changes in the energy transition, particularly in regions with increasing adoption of renewable energy sources like solar panels. Tom shares insights into the continuous evolution of their models and the technology stack used at Dexter Energy, including Python, Google Cloud, Airflow, and various databases.

Finally, we uncover the data sources for weather data, essential for accurate forecasting, and the iterative process of determining model usefulness through backtesting. This episode provides a comprehensive overview of the dynamic energy market and the vital role of data-driven solutions in optimizing energy trading strategies.

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