Reactive Power Market
The Reactive Power Market enables NESO to secure the operation of the electricity network at the lowest cost to consumers.
What is the Reactive Power Market?
Reactive power services help ensure voltage levels on the electricity system remain within required limits, as set out in the SQSS (Security and Quality of Supply Standard). To maintain these voltage levels, NESO needs generators and other assets to either absorb or inject reactive power.
Since 2020, the Voltage Pathfinders have procured long-term voltage requirements. Building on the learnings from these initial Pathfinders, and the recommendations from the Future of Reactive Power innovation project, NESO has developed an enduring Reactive Power Market. This market provides a route to access voltage services through open, transparent and competitive processes.
The Reactive Power Market is made up of the following:
- Long-term Market (Y-4)
- Mid-term Market (Y-1 / Within-Year)
- Short-term Market (D-1)
For more information, please use the links below.
Long-term (Y-4)
The long-term market is the succession to Voltage Pathfinders and will now form part of the Reactive Power Market, with these types of tenders being run under our ‘Network Services’ programme.
Mid-term market
The Mid-term Market provides a route to access voltage capability from existing assets, over and above the requirements of the Grid Code.
Short-term day ahead (D-1)
Our analysis and assessment have concluded there is no net-consumer benefit from the implementation of a short-term reactive power market at present.
Latest News
6 July 2026
Open letter to industry on DER Participation in NESO Reactive Power Markets.
DER Open Letter to Industry View Slides Watch Recording Download Q&A
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