As part of a complete review of National Grid’s ancillary services arrangements, new product roadmaps have been published throughout 2018 for a number of services, addressing the revised service requirements, auctioning arrangements and compensation that is available. The Reactive Power market is less mature than the response or reserve markets so more details have been included in this specific roadmap. The principles of the reactive power service redesign are addressed by:
“¢ Reviewing current products and methods for procuring Reactive Power and working with industry to develop a better, shorter-term market;
“¢ Improving the transparency of products and system needs;
“¢ Publishing an invitation for Expressions of Interest in the provision of Reactive Power services in South Wales.
Reactive Power is used to control voltage levels across the electricity system and is either generated when more is needed or absorbed when less is required to keep the voltage balanced at the right level. Requirements for voltage control are regional and vary significantly across the electricity system. Generators and many network assets (such as transformers, overhead lines and cables) are able to generate/absorb Reactive Power. The requirement for Reactive Power generation has consistently decreased for the last 10 years and this trend is expected to continue. National Grid’s requirements for both Reactive Power generation and absorption are met through a combination of balancing services and network asset investment.
Reactive Power generation and absorption is procured through two methods:
1. The Obligatory Reactive Power Service (ORPS)
2. The Enhanced Reactive Power Service (ERPS).
In recent years, National Grid has experienced an increased reliance on balancing services for the provision of Reactive Power. National Grid wants to work with providers to replace this service with a better-functioning market for Reactive Power, where requirements are tailored area by area and the service is procured from the most cost-effective providers.
National Grid plans to publish an invitation for Expressions of Interest in the provision of a Reactive Power service to meet a requirement within South Wales by Q3 2018/19. This will look for providers who are able and interested to provide a Reactive Power service in that region for some or all of the period April 2019 to April 2021. The invitation for Expressions of Interest will include:
“¢ Definition of the region;
“¢ Reactive generation and absorption requirement;
“¢ Service windows;
“¢ Current spend managing reactive power requirements.
To find out more about the about the support TNEI can offer developers wishing to provide reactive power services, please visit our grid connections page, or call us on 0161 233 4800.
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