Short-term day ahead (D-1)

Our work for the short-term market will also consider the output from the review of the Obligatory Reactive Payment Service (ORPS). Prior to the introduction of a short-term market, we are continuing the roll out of Commercial Services Agreements (CSAs), providing an option via which generators can receive payment for their additional reactive power capability beyond their mandatory obligations.  NESO are now assessing the efficacy of implementing a short-term reactive power market and will update and engage with industry as this progresses.

Commercial Services Agreement (CSAs)

Ongoing CSA Work

Update: December 2022 - Request for Information Accessing Additional Voltage Capability 2023 - 2026

Earlier this year, National Grid ESO launched a request for information (RFI) to look at accessing additional reactive capability across England and Wales between 2023 and 2026.

We received considerable interest with over 100 solutions and over 8 GVAr volume submitted by providers:

  • 58 transmission-connected responses totalling 5.4 GVAr
  • 56 distribution-connected responses totalling 2.9 GVAr

Note the above volumes have not been subject to effectiveness studies.

The responses to the RFI have demonstrated that there is considerable additional capability potentially accessible to ESO which is really encouraging. We have also learnt that many parties who have mandated reactive power obligations also have the capability and desire to deliver additional reactive power. The RFI also presented a growing appetite to deliver reactive power capability from units connected at the distribution level which traditionally do not offer such services to ESO, appreciating the challenges around effectiveness.

For distribution-connected submissions, ESO require studies from our Distribution Network Operator stakeholders in order to determine the effectiveness and viability of submissions. We continue to progress these discussions and hope to be able share next steps early in the New Year.

We have been able to make faster progress on the transmission-connected solutions as these types of assets by nature have much greater effectiveness on the network. We are pleased to be able to offer these solutions a new commercial services agreement to cover capability outside of grid code obligations and we will be reaching out to parties shortly to outline how we intend to implement these agreements within our current processes. 

We thank parties for their submissions into the RFI and look forward to continuing to progress accessing additional capability within the market.

Any further questions, please contact [email protected]