Part 2: Top Weather Data Challenges in the Energy Industry

Meteomatics’ 2025 Weather Data Trends in Energy Report explores where energy companies feel the weather is affecting their operations and customers the most. Meteomatics surveyed 270+ U.S. senior level energy executives across grid operations, utilities and energy trading to assess weather-related challenges they’re currently navigating, the impact of the weather data they rely on, and what technologies they are targeting for future investments.

Energy Companies Are Facing Fluctuating Renewable Generation and an Inability To Meet Increasing Customer Demand

KEY INSIGHTS

• Extreme weather events are causing fluctuations in energy production for 68% of grid operators.
  
• Sixty five percent (65%) of grid operators are struggling to meet increasing energy demand during extreme weather events.
  
• Renewable energy generation (eg. solar and wind power) is being impacted by unpredictable weather patterns according to 68% of utilities.
  

Over Half of Energy Companies Plan To Increase Reliance on Renewable Energy Sources in the Next Decade

KEY INSIGHTS

• Fifty one percent (51%) of energy utilities expect to increasingly rely on renewables to supplement their grids over the next ten years.
• To successfully harness the renewable power generated, 49% of grid operators plan to invest more into advanced weather forecasting and data tools.
• Other key technologies grid operators will increase investment in are energy storage solutions (52%) and smart grids (42%).

Renewable Energy Is the Number One Area Utilities Are Seeing an Impact From Weather

KEY INSIGHTS

• Nearly half (48%) of utilities and grid operators say that weather has the greatest effect on the day-to-day operations of renewable source.
• Other top areas that weather is impacting energy companies is energy load (47%), grid demand (41%) and grid resilience (36%).

Utilities Are Not Ready To Meet Ferc 881’s Deadline - Even With the Extension

KEY INSIGHTS

• Every utility has started the process towards being regulatory compliant, however, only 35% have already completed the process of upgrading their transmission infrastructure.
• Nearly 40% of energy companies feel inaccurate weather forecasts will result in a loss of customers because they will not be able to meet demand

Volatile Weather Means Unpredictable Pricing for Energy Traders

KEY INSIGHTS

• A majority of energy traders (64%) are experiencing price volatility in the market due to energy supply disruptions.
• Renewable energy is a main factor in this, with 64% of traders citing unpredictable weather as the cause for their inability to anticipate renewable output.

AI Models Are an Essential Tool for Energy Traders

KEY INSIGHTS

• Ninety percent (90%) of traders believe AI models are very important to their business and 79% of the companies’ traders work for utilize weather AI models for their day to day operations.
• Of the 21% of companies that have not yet implemented AI weather models, 67% have plans to integrate them into their business in the coming year.

Traders Are Investing in Advanced Weather Forecasting

KEY INSIGHTS

• Seventy-eight percent (78%) of energy traders expect to increase their investment in advanced weather intelligence in the decade.
• With this, 64% of energy traders think they will see increased speed in their weather forecasts.