National Grid ESO has invited ‘embedded’ providers (on the distribution network) to bid to provide reactive power services alongside transmission-connected providers. Tender submissions for the one-year contract must be sent by 8 November.

This is the first time that the NGESO is seeking provision of the service from embedded providers that are not classed as Balancing Mechanism participants, and NGESO said “we are therefore working very closely with the DNO (SPEN) to help identify potential participants, understand locational effectiveness of potential participants and understand what restrictions any embedded providers may be exposed to”. There are four separate contract forms covering connection levels and firm or flexible availability. 

NGESO plans to publish a second tender for reactive voltage service requirements for the Mersey area for April 2022 onwards on 25 November.

Reactive power services maintain voltage levels on the system remain within a set range. NGESO manages it by instructing generators or other asset owners to either absorb or generate reactive power. Managing voltage levels comes from maintaining a balance between elements on the system, which either absorb reactive power (decreasing voltage) or generate reactive power (increasing voltage).

Early investigation of a similar tender in south Wales was not progressed.

More information here

Further reading 

ESO announces timetable for Mersey reactive power service tenders

National Grid ESO sets out plan to manage grid without fossil fuels by 2025

System Operator seeks BM and non-BM reactive power providers for South Wales and Mersey