Dynamic Operating Envelopes Workstream

The Distributed Energy Integration Program (DEIP) is exploring the value that Dynamic Operating Envelopes could offer to the energy transition.

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This workstream aims to:

• build a shared understanding of the opportunities and challenges
• share insights on approaches currently under investigation
• identify reforms that could be implemented to establish dynamic operating envelopes.

A DEIP Working Group is leading a program of webinars and workshops to complete this work.

Operating envelopes are the limits that an electricity customer can import and export to the electricity grid. These limits are agreed between networks, customers and the AER as part of the customer connection or regulatory process.

Currently, in most cases, operating envelopes are fixed at conservative levels regardless of the capacity of the network because they are static and need to account for ‘worst case scenario’ conditions.

Dynamic operating envelopes are where import and export limits can vary over time and location. Dynamic rather than fixed export limits could enable higher levels of energy exports from customers’ solar and battery systems by allowing higher export limits when there is more hosting capacity on the local network.

The Dynamic Operating Envelopes Workstream Group consists of seven organisations:

• Australian Renewable Energy Agency (ARENA)
• Energy Security Board (ESB)
• Australian Energy Market Operator (AEMO)
• Australian Energy Regulator (AER)
• Australian Energy Market Commission (AEMC)
• Australian National University (ANU)
• SA Power Networks