The system and method described herein relate to production of power from the wind farm that incorporate tunable power production forecasts for optimal wind farm performance, where the wind farm power production is controlled at least in part by the power production forecasts. The system and method use a tunable power forecasting model to generate tunable coefficients based on asymmetric loss function applied on actual power production data, along with tuning factor(s) that tune forecast towards under forecasting or over forecasting. The power production forecasts are generated using the tunable coefficients 34 and power characteristic features that are derived from actual power production data. The power production forecasts are monitored for any degradation, and a control action to regenerate the coefficients or retune the model is undertaken if degradation is observed.