LCP has launched a new software platform called Enact to help electricity traders to monitor and analyse the intraday and balancing markets.
The consultancy built the tool in response to an “explosion” of data in the power sector, which is becoming increasingly complex due to the growing number of generators and the proliferation of smart technologies.
The platform collects, cleanses and collates data from a number of sources to provide a “one-stop shop” for traders. This information is used to create six-hour rolling forecasts for demand, wind generation and imbalance volumes from the ground up.
LCP claims the software is significantly more accurate in predicting the direction of imbalance changes between settlement periods than the electricity system operator’s own forecasts (86 per cent versus 59 per cent).
Traders can also use the platform track the performance of themselves and their rivals, identify historical trends and draw comparisons between current and future events.
“With the power market becoming more complex, more competitive and more real-time, it’s crucial that traders have the most accurate information available to them,” LCP head of market insight, Kyle Martin.
“This will enable them to trade more effectively and better manage risk.”
Rajiv Gogna, energy product development lead at LCP said: “One of the most innovative elements of the Enact platform is its use of neural networks.
“This type of cutting-edge artificial intelligence has shown state-of-the-art results recently as a result of the huge increase in computational power available.
“The energy market is ripe for these techniques, with the huge amount of data to crunch through, and complex relationships to learn.”
LCP provides modelling services for the Department for Business, Energy and Industrial Strategy, Ofgem and the Low Carbon Contracts Company, among others.