If heat is rising from the pavement like steam from a pot of boiling water, people usually turn up their air conditioners. The concept that weather is directly related to energy consumption is not mind-boggling. The information is used by energy traders to possibly reduce the financial risks of trading energy. We take a lot of data and turn it into information for a trader so that, with a few mouse clicks, they have the weather they need right away. Energy traders use weather forecasts to determine the projected electricity loads of utility companies.
Traders buy, sell or trade energy with the intent of making a profit.
For example, if there is an abundance of energy in New Mexico, it would be sold to a trader for cheap rates. The trader, in turn, could sell this inexpensive energy at a higher rate to a state or region that needs it. Factoring in such things as humidity, cold fronts, heat waves and average temperatures allows Syncrasy to predict what energy consumption will be in any given region, said head programmer and Vice President Daniel Fuka. To complete the energy consumption predictions, Syncrasy created two different products which became available online Nov. 13. It compiles a minimum of 10 weather forecasts from National Weather Service and U.S. Air Force Academy models.