A method for forecasting energy demand for a single building, a neighborhood or a city in an urban environment is disclosed. The method balances energy production between (1) a renewable energy source and (2) an energy grid source based in predicted demand and predicted supply. The method treats urban heat island (UHI) calculations as being dynamically impacted by predicted weather conditions to calculate a weather-adjusted UHI. Predicted energy consumption rates for weather conditions use the weather-adjusted UHI to increase accuracy of the prediction.
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