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Integrating Information, Misinformation and Desire: Improved Weather-Risk Management for the Energy Sector

  • Leonard A. SmithEmail author
Chapter

Abstract

Weather-risk management has many facets. One particularly costly challenge comes from “chasing the forecast”. The Forecast Direction Error (FDE) approach was deployed to address the dilemma facing decision-makers who face this challenge: today’s probabilistic weather forecasts contain too much information to be ignored, but not enough information to be safely acted on as probability forecasts. Success was obtained by focusing on the information content of forecasts, and restricting their use to tasks in which the forecasts are informative in practice.

Keywords

Weather Forecast Capture Rate Forecast System Predictive Distribution Probability Forecast 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Notes

Acknowledgments

The FDE’s success hinged on the engagement and enthusiasm of Dave Parker, chief meteorologist for EDF England. EPSRC and NERC grants supported the work of Jochen Bröcker, Liam Clarke, and Devin Kilminster. I am grateful for the support of Pembroke College, Oxford.

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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.London School of EconomicsLondonUK
  2. 2.Pembroke CollegeOxfordUK

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