A system and method for performing novel wind forecasting that is particularly accurate for forecasting over short-term time periods, e.g., over the next 1-5 hours. Such wind forecasting is particularly advantageous in wind energy applications. The disclosed method is anchored in a robust physical model of the wind variability in the atmospheric boundary layer (ABL). The disclosed method approach leverages a physical framework based on the unsteady dynamics of earth's atmosphere, and drives forecasting as a function of previously-observed atmospheric condition data observed at the same location for which a wind forecast is desired.