Vitec Energy develops advanced forecasting systems for the energy industry that help customers plan production, trade and consumption of electricity, gas and district heating in the short and medium term. The solutions are used by over one hundred energy companies in some thirty countries, and are businesscritical for customers’ daily operations.
Our strategy for product development and innovation is based on real needs, clear business value and long-term value creation. Through close customer dialogues, cutting-edge technical expertise and a structured yet agile approach, we turn visions and investments into concrete, everyday solutions. A particular focus area is how to use AI in a safe, reliable and practical way in order to simplify, streamline and strengthen our customers’ competitiveness.
The following case illustrate how these principles are applied in practice in different industries and business contexts. The examples demonstrate how our companies combine customer insights, technical innovation and responsible development to create measurable effects – from better user experiences and improved efficiency to new business models and stronger societal benefit.
A well-functioning energy system is based on balance: in each moment, the amount of energy produced must equal the amount consumed. For energy companies, this entails a significant challenge. Numerous factors affect forecasts for production and consumption – weather, season, holidays and human behavior – and even small deviations can lead to high imbalance costs in the energy market.
For a long time, Vitec Energy has worked with mathematical modeling and time series analysis. In the past decade, artificial intelligence has gained an increasingly central role. Today, proprietary neural networks are combined with traditional statistical models, where a total of some twenty different AI model variations are continually compared and weighed against one another and against the traditional models to deliver the best possible forecast quality.
The result is a significantly more consistent and more accurate forecast, with a reduction in forecast errors by over 30 percent compared with earlier generations of models.Magnus Fohlman, Product Manager at Vitec Energy
AI models are particularly effective at identifying complex, non-linear connections between, for example, weather data, historical consumption patterns and social behaviors. By using large quantities of data – including weather forecasts from several suppliers and a long history of energy data – the models can be adapted and improved over time.
For customers, improved forecast quality means concrete business benefits. More reliable forecasts reduce the need for manual adjustments and lower the risk of expensive incorrect decisions in energy trading and production. That leads to lower imbalance costs, a higher degree of automation, better
planning of purchasing, production and storage, and reduced operational risk.
In addition to the actual forecasts, Vitec Energy has also integrated AI into the user experience. Using an AI-based function, customers can create their own analyses, diagrams and visualizations directly in the system by describing what they want to see in text. What used to require data exports and manual analyses can now be done directly in the same interface faster and with fewer sources of error.
AI is also used internally to streamline work with development. With the help of AI agents, entire functions – from specifications to code, testing and verification – can be developed in considerably less time. Work that previously took weeks can now be done in one day. This enables faster innovation, shorter lead times and better use of resources.
At the same time, all use of AI takes place within the framework of robust security and quality processes. Forecast systems are based on several parallel models that are continuously compared with one another, which creates redundancy and high operational reliability – a crucial factor in an energy system that is critical for society.
“The improved forecast quality combined with faster product development and increasingly user-friendly decision support has contributed to a strong net inflow of new customers. The extensive customer base and large quantity of energy data also create high barriers to entry for competitors,” says Christer Modin, Head of Model Development at Vitec Energy.
By using AI as a strategic tool – both in the core product and in internal development – Vitec Energy has strengthened its position as a leading supplier of forecast systems for the energy industry. The results are better forecasts, faster development and a scalable business model with solid long-term competitiveness.
This article was originally published in Vitec's Annual report 2025