Energy firms tune in to weather forecasts

As weather forecasting becomes more accurate, utilities and banks are increasingly turning to it – not only to predict power and gas demand – but also to find arbitrage opportunities, writes Gillian Carr

Weather-based technology is growing increasingly sophisticated, producing more accurate and longer-term forecasts and giving those in the energy industry the tools to better hedge their positions.

As well, the ability to produce faster and more accurate weather predictions provides potential arbitrage opportunities for energy traders with specialist knowledge on how a market may be affected. As a result, meteorologists and weather forecasting consultants have found themselves in increasing