The increasing complexity of energy markets, driven by geopolitical factors, weather variability, and the volatility of raw materials, is transforming traditional analytical models.

In this context, artificial intelligence is emerging as a key tool to improve the reliability of forecasts and optimise decision-making strategies in energy markets.

Jesús María Sahún, Commercial Director of Energy Consulting at Switching Consulting, argues that the incorporation of AI algorithms makes it possible to “objectivise the subjective” in market modelling.

This capability is essential for integrating variables such as geopolitical conflicts, international energy policies, and socio-economic expectations—factors that have traditionally been difficult to quantify in predictive models.

By analysing vast volumes of metadata, internet searches, and press headlines, it is now possible to anticipate demand trends and movements in the prices of energy commodities.

“During the pandemic, we already observed how search patterns on Google anticipated social and economic shifts; applying this logic to energy markets makes it possible to include variables that were previously considered intangible,” Sahún told Strategic Energy Europe.

This analytical approach not only provides greater precision in price forecasting, but also democratises access to highly complex analysis, traditionally reserved for large market players or investment funds.

The use of meteorological data is another cornerstone of these advanced analytical approaches. 

“Current tools allow us to forecast the productivity of renewable energy sources and calculate hydrological reserves, enabling more accurate projections of demand structures based on weather conditions,” Sahún explains.

Building on this framework, and in collaboration with the Aragon Technological Institute, Switching Consulting developed DELFOS, a platform designed to anticipate the evolution of electricity markets by integrating financial data, meteorological variables, and geopolitical analysis.

The consultant explains that “this tool is designed to integrate and import all critical data from the energy system, not only in Spain but also at the European and even international levels.”

DELFOS also processes variables such as natural gas prices, currencies, energy market data, and forecasted demand, providing short- and medium-term price projections.

“This solution enhances what we have been doing for years: price forecasting, which is critical both for electricity and natural gas consumers and for renewable energy investment projects,” Sahún states.

Furthermore, the platform acts as a strategic ally for the deployment of energy storage projects. 

“Storage solutions need to arbitrate prices to maximise profitability. DELFOS helps to identify the optimal hours for storing and releasing energy, not only from a technical perspective but also from a financial one,” the executive details.

Finally, he notes that the tool is not static; it evolves in line with the energy market itself and is fully replicable across different geographies worldwide.

Although it is currently being implemented only in Spain, there is a clear intention to expand across the rest of Europe and eventually to international markets. “From Aragon to the world, but always thinking of the planet,” concludes the executive of Switching Consulting.