//GLOSSARY
Energy and water forecasting terms explained
A reference guide to the terminology used across Erode products, energy markets, and water systems.
//TERMS & DEFINITIONS
Browse by category
Market Terms
Locational Marginal Price (LMP) is the cost of delivering one additional megawatt of electricity to a specific node, reflecting generation costs, congestion, and losses. The merit order ranks generation sources by marginal cost to determine dispatch priority. Congestion occurs when transmission capacity limits prevent the lowest-cost power from reaching demand centers, causing price separation between nodes. Settlement is the financial reconciliation process where ISOs calculate payments and charges based on actual generation, consumption, and market clearing prices.
Forecasting Terms
Forecast horizon refers to how far ahead a prediction extends — from minutes (real-time) to years (long-term planning). A forecast vintage is the specific timestamp when a forecast was produced, allowing comparison of successive predictions for the same target period. Ensemble forecasting runs multiple model simulations with varied initial conditions to capture uncertainty and produce probabilistic outputs. Probabilistic intervals (e.g., P10/P50/P90) express the range of likely outcomes, giving operators confidence bounds rather than a single deterministic value.
Hydrology Terms
Inflow is the volume of water entering a reservoir or river reach over a given time period, driven by snowmelt, rainfall, and upstream releases. Snow Water Equivalent (SWE) measures the amount of liquid water contained in the snowpack if it were completely melted — a critical input for spring runoff forecasting. Runoff is the portion of precipitation that flows over land into streams and rivers rather than infiltrating the soil. Reservoir operations involve managing water levels, releases, and storage to balance flood control, power generation, environmental flows, and water supply objectives.
Grid Operations
Dispatch is the real-time process of directing generating units to increase or decrease output to match electricity demand while respecting transmission limits. Curtailment is the intentional reduction of generator output — often applied to wind and solar — when supply exceeds demand or transmission capacity. A balancing area (or balancing authority) is the geographic region responsible for maintaining the balance between generation and load in real time. Transmission congestion arises when power flows approach or exceed the thermal or stability limits of transmission lines, requiring costlier generation to serve load.
Data & API Terms
An API (Application Programming Interface) provides programmatic access to forecast data through standardized HTTP endpoints that return structured JSON or CSV responses. Rate limiting controls how many API requests a client can make within a time window to ensure fair usage and system stability. A webhook delivers forecast updates to your system automatically when new data becomes available, eliminating the need for polling. Data granularity refers to the time resolution of forecast outputs — from 5-minute intervals for real-time operations to hourly or daily for planning horizons.
Regulatory Terms
An ISO (Independent System Operator) or RTO (Regional Transmission Organization) is the entity that manages the electric grid, operates wholesale electricity markets, and ensures reliability across a multi-state or provincial region. Capacity markets are forward-looking mechanisms where generators commit to being available during peak demand periods in exchange for capacity payments, ensuring resource adequacy. NERC (North American Electric Reliability Corporation) sets and enforces reliability standards for the bulk power system. FERC (Federal Energy Regulatory Commission) regulates interstate electricity transmission and wholesale markets in the United States.
//GET STARTED
Ready to get started?
Explore how Erode can support your energy or water operations with reliable, high-resolution forecasts.