Who can participate?
| |
Generation |
Demand |
| BMU |
yes |
n/a |
| Non-BMU |
n/a |
n/a |
Service Description
The Obligatory Reactive Power Service is the provision of varying Reactive Power output. At any given output the Generators may be requested to produce or absorb reactive power to help manage system voltages close to its point of connection. All generators caught by the requirements of the Grid Code are required to have the capability to provide Reactive Power.
Why is it needed?
National Grid manages the voltage of the GB transmission system to meet Transmission Licence requirements. National Grid ensures that Reactive Power is provided on a local basis to meet the constantly varying needs of the system and that there are sufficient Reactive Power reserves available to meet contingencies.
Major Technical Requirements
The reactive power provider must
- Be capable of supplying their rated power output (MW) at any point between the limits 0.85 power factor lagging and 0.95 power factor leading at the BMU terminals.
- Have the short circuit ratio of the BMU less than 0.5.
- Keep the reactive power output under steady state conditions fully available within the voltage range ±5% at 400kV, 275kV, 132kV and lower voltages
- Have a continuously acting automatic excitation control system to provide constant terminal voltage control of the BMU without instability over the entire operating range of the BMU.
The full requirements for the Obligatory Reactive Power Service are referred to in Grid Code CC 6.3.2.
Procurement Process
The Obligatory Reactive Power Service is procured via either Market Agreements or Default Payment Arrangements.
Generators can participate in a tender held every six months. National Grid assess the tenders in accordance with the evaluation criteria specified the CUSC. A successful tender then becomes contractually binding. A market agreement is entered into. If a tender is not successful or do not attend a tender, the Generator will be paid on Default Arrangements if they provide the service as instructed.
Payment
Payment Structure:
Market Arrangements whereby the tender allows the Generator to request:
- An Available Capability Price (£/MVar/hr) and/or a Synchronised Capability Price (£/MVar/hr) and/or a Utilisation Price (£/MVarh)
- The choice of term from a minimum period of 12 months and thereafter in 6-month increments (12, 18, 24, 30, 36 months, etc.).
Default Arrangements whereby, in the absence of a market agreement, payment (£/MVarh) is made to generators for reactive utilisation. The payment rate is calculated on a monthly basis by reference to both RPI and Over The Counter (OTC) baseload power indices.
BSAD: Not Applicable
ABSVD: Not Applicable
Summary of Further Information
CUSC Section 3
Grid Code CC 8.1
Grid Code CC6.3.2
Reactive Power tender invitation and monthly report can be found through the link below