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With the increase of solar photovoltaic (PV) permeability in power systems, high-precision PV power forecasting is critical to secure the economic operation of the smart grid. Solar irradiance is the most important factor affecting PV power. Accurately estimating the amount of solar irradiance leads to better production estimates from solar panels. Meanwhile, satellite images provide information on current and future cloud coverage, and are potentially useful in inferring solar irradiance. To accurately capture the effect of cloud on irradiance, this article develops a real-time mapping model between satellite image and solar irradiance. Based on the mapping model, a new ultrashort-term global horizontal irradiance (GHI) forecasting method combining satellite visible images and meteorological information is proposed. First, a modified method is utilized for reducing the influence of the solar zenith angle on pixel intensity and extracting the features in the image processing stage. Then, the cloud cover factors are extracted from satellite visible images by using the modified convolutional neural network. After that, the GHI forecasting model is developed, which is based on the combined use of meteorological information and cloud cover factors. Meanwhile, a cloud motion forecasting method using predicted wind speeds is developed for discussion. The better performance of the proposed method is demonstrated by comparing it with several benchmark models. [ABSTRACT FROM AUTHOR]