Getting brighter: Impacts of improved day-ahead solar forecasts in high-solar, high-storage electricity systems

This paper analyzes the impacts of improved day-ahead solar forecasts on costs and dispatch in the solar-rich Southeast U.S. It uses an optimized high-solar, high-storage resource portfolio in which solar generation capacity accounts for 45 % of total installed capacity (34 %–36 % of generation) and energy storage capacity (43 GW) is equivalent to 33 % of peak demand. In a base scenario, improved day-ahead solar forecasts reduce production costs by $87 million per year ($0.13 per MWh load, 2023$). This level of savings is within the range or lower than earlier studies of solar forecast improvements at lower levels of solar generation (<25 % of total generation). In this study, solar expansion was accompanied by two important sources of flexibility for managing solar forecast error: energy storage and day-ahead solar curtailment. The analysis finds that regional coordination complements day-ahead solar forecast improvements while natural gas commitment flexibility is a substitute for forecast improvements, as the improved solar forecast leads to sub-optimal commitment of thermal units. Day-ahead solar forecast improvements reduce reserves required to manage forecast error by 30 %. Fewer reserves to manage large, infrequent solar forecast errors could be an important benefit of improved solar forecasts.