LS Electric has developed its own artificial intelligence (AI)-based wind power forecasting technology and is set to expand its power brokerage operations, including virtual power plant (VPP) services.
The company announced that it recently completed development and real-world validation of its AI-driven wind generation prediction model. Wind power, known for its output volatility due to changing weather conditions, has long been considered one of the most challenging renewable energy sources to forecast accurately.
When applied to a wind farm in Jeju late last year, the model achieved approximately 92 percent forecasting accuracy in November, a month marked by significant weather fluctuations. The system reduced the average error rate from around 10 percent to 8 percent, meeting the standards required for incentives under Korea’s renewable energy forecasting program operated by the Korea Power Exchange.
LS Electric said the model incorporates a dual forecasting structure that reflects extensive meteorological data as well as regional characteristics such as terrain, altitude and slope, along with performance variations among individual turbines. By combining machine learning and deep learning algorithms, the system integrates multiple variables to deliver more precise wind output predictions.
Based on this technology, LS Electric plans to expand its power brokerage business, particularly in the virtual power plant sector. A VPP integrates distributed renewable energy resources across different locations into a single, digitally managed system. By predicting generation levels in advance and optimizing supply strategies, VPPs help mitigate the intermittency of renewable energy.
In the rapidly evolving power brokerage market, forecasting accuracy has become a key competitive factor. Renewable energy producers participating in VPP programs must submit day-ahead generation forecasts. If the deviation between forecasted and actual output meets regulatory criteria, operators can receive additional settlement payments.
An LS Electric official said that advanced wind forecasting technology can help address intermittency issues and improve grid stability and efficiency. The company aims to further expand its VPP operations by providing solutions that enhance profitability for renewable energy producers.
