Beyond static limits: How DOEs are rewriting the rules for two-way power flows

Dynamic Operating Envelopes (DOEs) are fast emerging as one of the most significant innovations in distributed energy integration. They enable safe, two-way power flows at the distribution edge — moving the system beyond blunt, static export limits toward dynamic, data-driven signals that respond to real-time grid conditions.As rooftop solar, home batteries and electric vehicles proliferate, the need for flexible orchestration has become acute. DOEs represent not only a technical solution but also a redefinition of what it means to be a distribution business. In this article, senior leaders, including Australian Energy Market Commission (AEMC) Chair Anna Collyer and SA Power Networks’ Chief Executive Andrew Bills, explain how data standards, interoperability, and consumer protections are shaping the DOE landscape.

From static rules to dynamic signals

Bills has spent the last few months speaking publicly on the big picture – how DOEs are a key enabler of the evolving role of electricity networks, from asset managers to distribution system operators.

At Quest Events’ Australian Energy Week 2025, Andrew Bills framed DOEs not as a narrow operational tweak but as part of a broader transition: from networks as asset managers to distribution system operators. That evolution is critical in South Australia, where customers have already driven change at world-leading rates through adoption of rooftop solar, batteries, and smart devices.

Bills argued that failure to integrate these resources effectively risks creating a system that is more expensive, inequitable, and less sustainable. DOEs are designed to avoid that outcome, giving customers clear, real-time signals about how much energy they can consume or export based on what the network can accommodate.

He likened the approach to replacing static road signs with dynamic speed limits: opening capacity when available, scaling back when needed, and keeping everything moving smoothly.

For customers, this translates into simplicity and choice: they can set preferences once, let their devices automatically adjust in the background, and receive rewards for helping the grid (and the broader market). It’s a low-friction way to turn customer-side investments into system-wide benefits.

Lessons from South Australia

SA Power Networks has been at the forefront of DOE trials, including its Flexible Exports program. That technology’s success depends as much on people as on systems.

“Equipment installers are key to Dynamic Operating Envelopes working well, or not at all,” Bills told Energy Insights.

“Systems and technology are important to a successful rollout,
but our experience also shows that uplifting the skills and capability of installers is critical – it is a big change, and an effective change management program is essential.”

Ahead of its full-scale rollout, SA Power Networks partnered with leading solar equipment manufacturers (OEMs) to deliver comprehensive training for installers. Bills described this as a blueprint for engaging across the value chain.

Another key learning was visibility. “Because DOEs are a digital signal, rather than a physical box or cable that can be seen and tested, installers found it difficult to validate if a DOE was working,” he explained. In response, the utility developed an on-site capability test that allows installers to check functionality in real time.

Building customer trust

Customer engagement has been central to scaling adoption. Since SA Power Networks completed its statewide rollout earlier this year, 95% of new solar applications have opted into the Flexible Exports offer.

Bills attributed this to clear communication and the trusted role of retailers. “We rely heavily on the solar retailers that sell systems, to communicate with customers about the offer,” he said. Early scepticism prompted SA Power Networks to create a simple one-page explanation, distributed via retailers, which reassured customers by carrying the utility’s independent voice.

Interoperability and national scale

Scaling DOEs beyond South Australia will require device interoperability, regulatory alignment, and harmonisation across jurisdictions.

“It’s essential that devices in homes and businesses are interoperable – that they can essentially ‘talk to each other’,” Bills noted. “There is a value chain involved in making DOEs work well, and a harmonised approach will support the entire sector to serve the market in an efficient and consistent way.”

To achieve this, SA Power Networks convened a national working group in 2018 with manufacturers, networks and academics, adapting California’s Common Smart Inverter Profile (CSIP) to Australian conditions. The result - CSIP-AUS, underpinned by international communications standard IEEE 2030.5 - now provides a standardised framework for device-to-utility communication. Alignment with international protocols reduces supplier costs while ensuring customers’ investments remain interoperable across jurisdictions.

Guardrails for future markets

Looking ahead, Bills emphasised that DOEs provide limits, not targets:

“Think of a DOE as guardrails in a bowling alley, providing the safe ‘limits’ of what can be done without breaching network capacity or safety. Then the customer, or an agent on their behalf, can ‘target’ any of the bowling pins in the lane by placing bids into markets.” 

This distinction ensures that in future DER marketplaces, DOE guardrails will keep transactions secure and reliable, even when trading signals clash with network conditions.

Smart meters: the digital foundation

For Australian Energy Market Commission (AEMC) Chair Anna Collyer, DOEs intersect directly with the Commission’s priorities on smart meter rollout and electricity pricing reform.

“Smart meters are the digital foundation needed for a modern, connected and efficient energy system,” she said. Universal deployment across the National Electricity Market (NEM) by 2030 will allow households and businesses to interact more dynamically with the grid.

The AEMC recently proposed that new smart meters installed from 2028 must have real-time data capability at no upfront cost to customers. Collyer described this as a “low-cost approach that delivers benefits for all electricity customers.” Enhanced visibility will enable CER owners to optimise participation in DOEs, while also underpinning advanced pricing structures and demand response.

Protecting consumers

Transparency and fairness remain central to regulatory design. “Customers should have clear visibility into how their operating envelopes are determined, when they may change, and what this means for their energy systems performance and revenue potential,” Collyer explained. DOEs, she stressed, should maximise export opportunities wherever network conditions allow, not impose blanket restrictions.

Regulatory momentum

The regulatory framework is evolving rapidly through the National Consumer Energy Resources (CER) Roadmap, which comprises four workstreams and sixteen priorities relevant to DOE implementation. Two stand out:

• Workstream M3: Examining market operator roles to clarify responsibilities for CER orchestration
• Workstream P5: Focusing on power system operator functions and standardising expectations around network management

These reforms are designed to enable consumers to increase solar exports, access vehicle-to-grid opportunities, receive fair compensation for grid services, optimise energy usage for bill savings, and participate safely in energy markets.

Importantly, Collyer noted, “there are no existing National Electricity Rules impediments to DOE implementation.” This flexibility has already allowed SA Power Networks to incorporate DOEs into standard connection processes for commercial and industrial customers.

The Australian Energy Regulator’s 2024 final guidance on export limits further clarified approaches for networks and customers. Ongoing framework refinement will continue through 2025–26, with interim guidance and industry standards filling gaps as deployment scales.

A system-wide transformation

The shift from static export limits to DOEs is not just a technical upgrade but a systemic reorientation. It demands coordinated investment in technology, skills, standards, consumer engagement, and regulatory design.

For networks, it represents a transition toward active system operation. For customers, it promises greater agency, choice, and reward. For the market, it unlocks scalable, interoperable pathways to integrate millions of distributed assets while maintaining safety and reliability.