Part 1: Top Weather Data Challenges in the Energy Industry
Most energy leaders say their current forecasts aren't accurate enough to manage weather risks.
Meteomatics’ 2025 Weather Data Trends in Energy Report explores how energy companies and investors are using weather data to make business decisions and optimize operations. Meteomatics surveyed 270+ U.S. senior level energy executives across grid operations, utilities and energy trading to assess the impact of the weather data they rely on, weather-related challenges they’re currently navigating and their future investment in weather data and forecasting tools.
The ability to accurately forecast the weather is critical for energy companies to effectively manage energy production to meet demand, navigate stressors on the power grid, minimize risks to workers and infrastructure, and optimize their earnings.
Below are the findings for Part 1 of the 2025 Weather Data Trends in Energy Report, which reveals that the majority of energy leaders say the weather forecasts they currently rely on are not accurate enough to effectively manage weather’s growing impact on their operations.
More Than Half of Energy Leaders Say Their Weather Forecasts Are Not Accurate Enough
KEY INSIGHTS
- Fifty-one percent (51%) of energy leaders say their company’s weather forecasts are not highly accurate (under 80% accuracy).
- Only 4% say that their weather forecasts are always accurate.
Weather Data Quality Tops Energy Leaders' Concerns
KEY INSIGHTS
- Energy leaders say their top challenges with the weather data they currently rely on include insufficient accuracy, reliability and resolution (43%), inefficiencies around how their data is delivered (40%) and that it’s too complex to understand (33%).
- Lower accuracy, reliability and resolution leaves gaps in energy companies’ ability to effectively manage weather’s increasing influence on their operations.
Hurricanes, Floods and Heatwaves Pose the Largest Threat to Energy Companies
KEY INSIGHTS
- Ninety-three percent (93%) of energy leaders say their company has been impacted by extreme weather events.
- The extreme weather events with the largest impact on energy companies, according to energy leaders, are hurricanes (44%), floods (43%) and heatwaves (35%).
- Nearly one-third (32%) of leaders also name blizzards, hail and thunderstorms, tornadoes and cold waves as extreme weather events with a significant impact to business.
AI Can Help Energy Companies Make Sense of Their Weather Data
KEY INSIGHTS
- One-quarter (24%) of energy leaders say one of their top weather data challenges is that their data is not actionable.
- Eighty-five percent (85%) of executives believe AI and machine learning (ML) would make their weather data more actionable to make more informed business decisions.
- Many leaders also say that the visualization and animation of weather data (82%), mobile access to weather insights (82%), innovative tools for data collection — such as weather drones (82%), and easy-to-use dashboards (81%) would improve actionability.
Energy Leaders Continue To Grow Reliant on Weather and Climate Data, Despite Current Challenges
KEY INSIGHTS
- Two-thirds (66%) of energy companies are using weather data on at least a weekly basis–with 29% using it daily in their operations.
- A majority of energy leaders (67%) say their reliance on weather data will grow by more than 5% over the next 3-5 years and 69% say the same about their reliance on longer-term climate data.
Nearly Every Energy Company Plans To Invest More Into Their Weather Data
KEY INSIGHTS
- Every energy company surveyed plans to increase their spend on weather data services over the next year.
- Thirty-two percent (33%) of leaders plan to increase spending by 21% or more.
- Currently, 66% of energy companies are spending between $20,000 and $75,000 on weather data.
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