Beyond Limits: Rethinking Grid Constraints with DOEs

Executive Summary

Dynamic Operating Envelopes (DOEs) are emerging as a critical tool for managing distributed energy resources (DERs) on modern electricity networks. By adjusting import and export limits at the grid edge, utilities can unlock greater hosting capacity, improve reliability, and support the energy transition without costly infrastructure upgrades – a mission Mitsubishi Electric Power Products has been dedicated to for seventeen years.

 

Introduction

As DER penetration accelerates across North America, utilities face mounting pressure to maintain grid stability while accommodating two-way power flows. Traditional static export limits, designed for worst-case scenarios, often leave valuable capacity untapped.

Enter Dynamic Operating Envelopes, a smarter, more adaptive approach to managing the grid edge.

 

What Are Dynamic Operating Envelopes?

A Dynamic Operating Envelope defines the real-time upper and lower bounds on how much power a customer or DER can import or export to the grid. Unlike static limits, DOEs can be time-varying and location-specific, calculated based on actual network conditions such as voltage, thermal constraints, and forecasted demand or generation.

This dynamic approach allows utilities to:

• Maximize DER hosting capacity
• Prevent voltage violations and thermal overloads
• Enable fairer and more efficient DER participation in markets

 

Global Perspectives: How DOEs Are Being Used

North America

In the U.S., research into DOEs is gaining momentum as utilities explore ways to integrate DERs more effectively. A recent study by Liu and Braslavsky (2023) proposed a robust DOE framework for unbalanced distribution networks, emphasizing fairness and resilience under uncertainty[1]. While large-scale implementation is still in early stages, pilot programs and regulatory interest are growing, particularly in states with high DER adoption.

Australia

Australia is a global pioneer in DOE deployment. With some of the highest rooftop solar penetration rates in the world, utilities like SA Power Networks and projects such as the Evolve Project have implemented DOEs to dynamically manage export limits. The Energy Security Board’s Post-2025 Market Design outlines reforms to integrate consumer energy resources and manage grid congestion through mechanisms like DOEs [2]. The Clean Energy Council also highlights the role of DOEs in enabling higher DER exports while maintaining system security [3].

Europe

In Europe, DOEs are being explored within the broader context of flexibility markets and grid modernization. The European Commission’s Grid Action Plan and the European Grids Package emphasize the need for dynamic grid management to accommodate growing renewable energy and DER integration [4] [5]. Research institutions and initiatives like ENTSO-E and Eurelectric are investigating decentralized DOE models that leverage local voltage measurements to support autonomous grid operation[6].

 

Industry Impact

For North American utilities, DOEs offer a pathway to:

• Enhance grid visibility and control at the distribution level
• Enable dynamic pricing and flexibility markets
• Improve customer satisfaction by allowing greater DER participation
• Reduce grid reinforcement costs through smarter asset utilization

As regulators push for more equitable and efficient DER integration, DOEs can serve as a foundational capability for future-ready distribution networks.

 

How Strata Grid can help utilities with Dynamic Operating Envelopes.

Strata Grid can help utility customers to implement Dynamic Operating Envelopes through use of our patented threshold control technology.

Strata Grid can be utilised to define DOE in constrained areas of the network, or in conjunction with market requirements. Strata Grid will then manage DER against those constraints in real time to ensure that safe network limits or contractual agreements are always adhered to. Ensuring effective, safe and secure network operational, and competitive energy markets are maintained.

Coupled with our forecasting and optimization capabilities, DOE can be calculated and updated based on forecasts of weather, load/generation or market activity.

Conclusion

Dynamic Operating Envelopes are not just a technical innovation, they’re a strategic enabler for utilities navigating the energy transition. By adopting DOEs, utilities can unlock new levels of flexibility, resilience, and customer value.

Want to learn more about how your utility can implement DOEs? Book a custom demo with our team.

 

References

1. Liu, B., & Braslavsky, J. H. (2023). Robust Dynamic Operating Envelopes for DER Integration in Unbalanced Distribution Networks. IEEE Transactions on Power Systems. arXiv:2212.03976[1].
2. Clean Energy Council. (2025). Clean Energy Australia 2025 Report. Retrieved from cleanenergycouncil.org.au[2].
3. Energy Security Board (Australia). (2021). Post-2025 Market Design Final Advice to Energy Ministers. Retrieved from esb.org.au (not directly cited above but foundational to DOE policy in Australia).
4. Eurelectric. (2025). Power Barometer 2025. Retrieved from powerbarometer.eurelectric.org[3].
5. ACER – Agency for the Cooperation of Energy Regulators. (2025). Position Paper on Improving European Grids Legal Framework. Retrieved from acer.europa.eu[4].
6. European Commission. (2025). Grids and Trans-European Networks for Energy. Florence School of Regulation. Retrieved from fsr.eui.eu[5].
7. IEEFA. (2025). Grid Investment Can Mark a Turning Point for Europe’s Power System Stability and Energy Security. Retrieved from ieefa.org[6].
8. Parliament of Australia. (2025). Global Change in the Energy System. Issues and Insights. Retrieved from aph.gov.au[7].