Speedwell Weather

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Speedwell Weather Topic Weather Station
Installation
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Goal To ensure 100 accuracy of settlement
data Common causes of inaccuracy - Observer
failure - Equipment failure (observing or
transmission) - Vandalism - Observation
tampering Preventing inaccuracy - Observer
failure -gt duplicate systems (independent
observers, equipment) - Equipment failure
(observing or transmission) -gt backup systems /
duplicate systems - Vandalism -gt secure sites
(physical obstacles) - Observation tampering -gt
smart observing techniques / duplicate
systems The accuracy of settlement data for
financial contracts is not a luxury, it is a
necessity
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• Speedwell Weather
• 10 years of experience in the weather risk
  markets
• Extensive client list
• Global leader for weather risk analysis products
• Weather Derivatives pricing software
• Data products (feeds / history) - Recalibrated,
  cleaned, and settlement data
• Forecast products
• Extensive experience with what clients need to be
  comfortable with a deal
• Independent 3rd party confirmation of
  observations
• Readily accessible observations for tracking a
  deal and settlement
• Transparency of methodology
• Expert team of professionals dedicated to meeting
  the needs of the weather market
• Stephen Doherty Director
• Dr. Michael Moreno Chief software architect /
  Quant developer
• Phil Hayes Head of data and forecast products

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• Speedwell Weather Settlement Data Experience
• Providing settlement services for numerous
  companies involved in OTC weather trading
• Providing settlement data for the Chicago
  Mercantile Exchange (CME)
• David Whitehead Project Lead
• David has extensive experience with the
  installation of weather stations and processing
  of settlement data for weather risk contracts.
  With a Masters degree in Meteorology coupled with
  10 years of experience in weather risk
  management he has extensive practical experience
  and market knowledge. Davids experience
  includes project management for the installation
  of weather stations in Malawi, Africa as part of
  a World Bank Weather Risk program. His
  participation involved all aspects of the work
  from equipment recommendation / selection,
  working with local authorities on land
  acquisition and physical station installation,
  processing of observations, and the creation of
  the final settlement data.
• In addition to Davids work on the Malawi project
  he has been involved
• with a similar project in Ethiopia (World Bank)
  , Chile, and other smaller scale
• OTC weather transactions. David and the
  Speedwell team have
• provided significant insight into the creation
  of settlement data for
• the CMEs latest set of weather contracts.

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• Weather Station Installation / Settlement Data
  (overview)
• Clarify project goals
• Equipment selection
• Equipment procurement
• Land rights acquisition
• Additional materials procurement
• Obtain local labor / site preparation / station
  installation
• Data processing
• Site maintenance
• Settlement data
• Site decommissioning?

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• Weather Station Installation / Settlement Data
  (key considerations)
• Equipment selection
• Determining the correct instrumentation for a
  project must be made
• with full understanding of the intended use and
  site of the
• instrument. The World Meteorological
  Organization (WMO)
• instrumentation.
• Considerations
• Are there meteorologically unique observing
  obstacles?
• - snowfall can be difficult to observe, extreme
  cold
• Does the data quality (QC) control process
  require certain observation types?
• - advanced QC techniques make use of the
  interrelationship between multiple variables
• Is there a high risk of theft?
• - instrumentation can be installed on an elevated
  platform, unique fasteners, fencing, razor wire
• What is the expected life span of the
  instruments?
• - temporary installation is different from
  permanent, if the instruments are permanent who
  assumes control?, does the assuming agency
  have a preferred instrument type?
• What resources are available?
• - Electrical power? GSM cell service?

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• Weather Station Installation / Settlement Data
  (key considerations)
• Equipment procurement
• purchase
• construction most systems are not off the
  shelf, typical timing 3-5 weeks
• shipment stations are typically shipped as
  cargo (slow)
• customs can be a major obstacle helpful to
  work with someone domestically
• transport moving stations parts into a remote
  area requires certain logistics
• Land rights acquisition (external to SWD
  participation)
• important to obtain the legal right to install
  instrumentation
• specifics concerning the cost of the lease, who
  owns the lease, length of lease, must all be
  considered

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• Weather Station Installation / Settlement Data
  (key considerations)
• Additional materials
• Many materials are best obtained domestically
  reduces costs and logistics
• Fencing type required
• Concrete cement, sand, water, mixer, frame
• Locks
• SIM card
• Site preparation / station installation
• Labor local individuals who speak the language
  and know where to obtain materials are best
• task - grading of land
• task - pour concrete slab
• task - install fencing
• task install station

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• Weather Station Installation / Settlement Data
  (key considerations)
• Data processing
• Confirm the transmission and receiving of
  observations
• Site maintenance
• It should be assumed that the site will have
  problems (especially in winter conditions)
• Maintenance options
• Local assistance (trained observer, equipment
  manufacturer)
• International assistance positioned locally
• International assistance on a need basis
• Typical concerns
• Freezing of instrumentation
• Debris (dust, dirt, leaves)
• Insect infiltration
• General failure
• Replacement sensors must be kept on hand

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• Weather Station Installation / Settlement Data
  (key considerations)
• Settlement Data
• Goal to ensure 100 accuracy of the observations
• Step 1 verify the validity of the observations
  from the installed stations
• surrounding station approach
• external observations (satellite observations,
  RADAR)
• comparison against climatology derived from time
  series of neighboring stations
• review of the interrelationship between observed
  variables
• precipitation -gt lower solar radiation (clouds)
• precipitation -gt temperature drop and relative
  humidity increase
• liquid precipitation -gt occurs with warmer
  temperatures
• Step 2 verify the observations for the primary
  stations / fill missing observations
• review the relationship between stations (primary
  vs. installed)
• determine the probability of differences between
  observations
• create estimate values for missing observations

• Clarify project goals
• Equipment selection
• Equipment procurement
• Land rights acquisition
• Additional materials
• Site / station installation
• Data processing
• Site maintenance
• Settlement data
• Site decommissioning?

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• Equipment Recommendations
• Manufacturers of instrumentation
• All Weather, Inc.
• focused on aviation systems
• Campbell Scientific, Inc.
• good reputation
• cold weather specific instrument packs
• Casella CEL
• used for World Bank project
• highly recommended (Dave W)
• lacking cold weather
• Coastal Environmental Systems
• focused on systems for the U.S. government
• Davis Instruments Corp.
• inexpensive solutions for private use
• Vaisala
• one of the largest suppliers of weather
  instruments
• specifically designed cold weather instrument
  packs

Note the ability to observe liquid equivalent
precipitation is a unique variable type not
supported by all vendors
Campbell Scientific Cold Region Research