Flexible connections
What is a flexible connection?
A Flexible Connection is a connection option where a customer keeps their site’s net flexible imports and exports within time-varying network limits. In return, SA Power Networks offers lower augmentation charges and lower ongoing tariffs designed to reward this flexibility.
Generating systems are already required to be capable of dynamic exports under the South Australian Government’s Office of the Technical Regulator’s Dynamic Export Requirements. Most exporting generators that wish to connect to our network are required to have a flexible export connection.
After trialling various elements of flexible connections, SA Power Networks now offers flexible load/import as an option for negotiated connections under our 2025-30 Connection Policy.
For businesses that require constant supply of their full load at all times, flexible load would not be suitable, as flexible load capacity can vary at any time, and may be interrupted for short or prolonged periods. Customers should be aware of the benefits and limitations of a flexible connection before proceeding with an offer, and should obtain independent advice before signing up.
Why have flexible connections been developed?
As the energy system transforms, there’s a growing expectation that networks will need to operate in smarter and more sophisticated ways to support the rapid uptake of customer energy resources (CER) like solar, batteries, EVs and flexible commercial/industrial loads, while maintaining the efficient delivery of our services to customers.
Flexible connections recognise there is under-utilised network capacity available for large periods of time throughout the year, with constraints only arising under certain network conditions. Flexible Connections have the potential to support the network in connecting more customers to our existing infrastructure before customer-funded network augmentation or upgrades are required.
How does it work?
Under a Flexible Connection, the customer nominates the amount of their total load that is flexible. Customers who opt for a flexible connection will need to make sure the flexible portion of their load and any exports can reduce to match the real-time capacity of the network in their location.
This capacity is communicated to the site via what’s called a ‘dynamic operating envelope’ (DOE), which is made up of a net import and export limit. Flexible connections customers are required to have equipment on site that can automatically interpret and respond to the DOE (for example, SCADA) to reduce load or exports as necessary.
All flexible connections sites are required to commence ramping immediately without any intentional delay upon receiving a revised DOE from SA Power Networks and ensure the net site output is within the revised DOE within six minutes of receiving the signals. More detail is available in our technical standards (TS132, TS133 or TS134 may apply, depending on the size and nature of your connection).
Net import and export limits are dynamic and variable, and will be sent to the site at short, regular intervals. The DOE will be anywhere between the agreed firm limit and the total combination of your firm and flexible limits. It is important to note that network limits represent the net of a site's demand and export at the customer connection point. This means that customers still retain the ability to self-consume any onsite generation, provided the net demand and export remains within the DOE.
Picture: Example flexible connection response to dynamic operating envelope (DOE) and agreed peak demand.
DOE limits will vary due to conditions such as, but not limited to, active customer connections, generation limits, load limits, planned and unplanned outages, weather, loss of system control and directions from electricity authorities. Flexible capacity may be zero under certain network operating conditions. Depending on network conditions there may be a significant, rapid, permanent reduction in flexible load or export availability. Capacity is not reserved or allocated by SA Power Networks for any specific customer's flexible load or export.
Frequently asked questions
Expand each section below for answers to commonly asked questions about Flexible Connections.
Upfront considerations
As with any kind of negotiated connection offer, customers should carefully consider the options available to them. Not all customers will be suited to a flexible connection. In the first instance, customers who are already used to shifting their load and generation in response to external signals like the dynamic wholesale market price may already have the capabilities needed for a flexible connection. Some general example use cases that may suit a flexible connection include:
- Standalone energy systems (e.g. solar and battery)
- Electric vehicle charging
- Data centres or other fast switching loads
- Sites with instant backup power sources
Over time, we expect more types of customers to take up flexible connections, and we will be refining our offer accordingly.
For businesses that require constant supply of their full load at all times, flexible load would not be suitable. Customers should obtain independent advice before signing up to a flexible connection.
Note that most exporting generators that wish to connect to our network are required to have a flexible export connection in accordance with our Technical Standards. Negotiated connection customers may generally opt out of a Flexible Export connection by agreeing to a zero export limit.
It’s important to understand that flexible load and export are available at times when there is adequate network capacity, meaning flexible capacity may be zero under certain network operating conditions. It may also be reduced or unavailable at times of network constraint, network abnormality or heightened risk of system security for extended periods of time, or permanently. Availability of flexible load and export may change over time, and will vary based on wide range of factors, including those listed above under ‘How will it work?’
You can nominate a portion, of your load connection as flexible, with the remainder as firm.
When determining how much firm load you require, some important things to consider include:
- the impact on your business operations at times when the flexible component is not available (including both intermittent interruptions and ongoing unavailability)
- the operating philosophy of the site,
- the capabilities of your on-site equipment and any energy management system in place (including the speed at which your site will be able to respond to changes in limits), and
- the availability of any backup generation.
These are general considerations only and customers should make their own assessment, based on the specific requirements of their site and business, as to whether flexible load is suitable. Each business will have different issues relevant and particular to them.
To be eligible for our flexible tariffs, the flexible load component must be at least 500kVA and not less than 20% of total Anytime Demand. More information is available in our Tariff Structure Statement for 2025-2030.
Because the flexible portion of a connection is always subject to the network availability in that area, Incremental Cost of Shared Network (ICSN) fees do not apply to the flexible component of your connection cost.
If there are network upgrades identified that may increase the availability of flexible network capacity, flexible customers may opt to pay an Immediate Network Access (INAC) fee for the associated costs to unlock greater flexible capacity. These upgrades will make additional capacity available, but this capacity is not reserved.
The following table summarises SA Power Networks’ up-front connections fees and charges for the 2025-30 period:
Please check our latest Tariff Structure Statement and Connection Policy to check which items apply to your connection. Further details on these charges will be outlined in your connection assessment. Additional costs may be incurred by the customer to implement the energy management technology required to receive SA Power Networks’ import and export limits (for example, SCADA).
Depending on the specific needs of your site, you may choose to proceed with firm load, or a combination of firm and flexible load.
In some cases, major network upgrades may be required to enable the requested firm load, which may result in significant cost and time impacts.
A customer may still have a flexible generation connection, while opting for a firm load.
To understand more about the definitions of firm and flexible, please refer to our Connections Policy.
Ongoing management
Flexible connections are eligible for a separate suite of ongoing tariffs. Under our 2025-30 Tariff Structure Statement, flexible tariffs include the following features:
- Anytime Demand for the flexible component being charged at 50% lower cost compared to fixed load component.
- A reduced window of time where Peak Demand is measured.
Please check our large business tariff webpage and our latest Initial Pricing Proposal Overview document to determine which tariff applies to your connection.
It is important to note that the peak demand value is not proactively enforced by SA Power Networks, unlike the Dynamic Operating Envelope (DOE). Flexible sites must adapt their flexible load and export in response to the DOE at all times, regardless of the temperature or time.
The agreed peak demand is nominated by the customer. As well as staying within the dynamic net export and import limits at all times, flexible customers should also proactively manage their energy demand during peak demand periods – in order to minimise their peak demand tariff charges.
It is important to note that these agreed peak demand limits in the tariff are not remotely managed or enforced by SA Power Networks, and it is a customer’s responsibility to manage their own peak demand. If a customer exceeds their agreed peak demand, this will re-set their new peak demand amount to reflect the higher limit, and they may be back-billed the difference.
The dynamic import limit for flexible load is not designed to reflect the agreed peak demand. This provides customers with the ability to use spare network capacity at this time, provided they are willing to pay increased demand charges for it.
SA Power Networks is developing a comprehensive compliance framework to ensure a fair and transparent process applies to all flexible customers. Dynamic operating envelopes allow SA Power Networks to manage flexible connections to ensure we can maintain a safe and reliable network for all users.
If a site exceeds their net import or export limit, this could cause damage to equipment, or in extreme cases lead to network outages or even fire risk. Therefore, in serious cases, sites that do not adhere to the DOE may have their net import and export limits reduced to a static limit or even disconnected. Failure to reduce your net flexible load or export when instructed, will result in a breach of your contract and you may be liable to SA Power Networks for associated costs we incur.
Flexible capacity is exactly that – flexible – meaning it can be impacted by a range of factors including, but not limited to:
- Active customer connections
- Generation limits
- Load limits
- Planned and unplanned outages or network abnormalities
- Loss of system control
- Directions from electricity authorities.
- Weather
As part of the connection assessment process, customers may receive more information about their specific site based on historical information and expected usage. This information is not a forecast of any kind. SA Power Networks does not guarantee future access to flexible capacity for load or export at any time, and customers should consider this as part of their connection application process.
Capacity is not reserved or allocated by SA Power Networks for any specific customer’s load. Flexible capacity is available at times when there is adequate network capacity, and may be zero under certain network operating conditions. It may be reduced or unavailable at times of network constraint, network abnormality or heightened risk of system security for extended periods of time, or permanently. Availability of flexible capacity may change over time.
Flexible load is available at times when there is adequate network capacity. There is no sure way to predict the long-term access to flexible capacity, as it depends on many different factors including:
- Future customer connections in your part of the network – including their size and operating profile
- Future weather conditions
- Changes to your own business operating profile
- Future network upgrades
- Directions from electricity authorities
It is possible that your access to flexible capacity could decrease or see no material change over the life of your operations. Flexible capacity may be reduced or unavailable at times of network constraint, network abnormality or heightened risk of system security for extended periods of time or permanently, and may be zero under certain network operating conditions.
SA Power Networks does not reserve capacity for specific customers or guarantee future access to flexible load or export capacity at any time. There may be a significant, rapid, permanent reduction availability of flexible load depending on network conditions. Flexible capacity may be zero under certain network operating conditions. This risk should be considered as part of your decision-making process.
If you are unsatisfied with your access to flexible capacity, you may be able to pay the Immediate Network Access Charge (INAC) to increase it or transition to a firm connection (for load only).
Customers involved in Frequency Control Ancillary Services (FCAS) will need to bid within the limits issued to them by SA Power Networks. We will continue to develop our flexible connection offer to cater for more sophisticated market participation as the market evolves.
Changing your connection
Depending on the specific needs of your site, you may be able to change your connection from flexible to firm in future.
Switching from flexible to firm will result in needing to pay for Incremental Cost of Shared Network (ICSN) and other upfront fees associated with firm connections and differing tariffs.
This process will require a connection alteration request and you may need to enter a new connection agreement. The costs of changing your connection may vary. The construction of the assets required to provide firm load may take considerable time and/or come at considerable cost. Any costs of establishing of a firm load may increase over time, and may be different to any previous estimates.
Please contact our Customer Solutions team in the first instance to understand any charges or conditions that would apply to you.
If your site can comply with the requirements of a flexible connection, including having the systems to ensure the energy demand of the site stays within SA Power Networks’ flexible net load limits at all times, then you may request to either add a flexible component, or convert existing firm capacity to flexible.
Changing from firm to flexible does not guarantee any return of fees already paid, including ICSN.
This process will require a connection alteration request, and you may need to enter into a new connection agreement. The costs of changing your connection may vary.
Please contact our Customer Solutions team in the first instance to understand any charges or conditions that would apply to you.
Depending on your individual needs and circumstances, you may be able to apply for an alteration to your connection and you may need to enter into a new connection agreement. Please contact our Customer Solutions team in the first instance to understand whether any additional charges or conditions may apply to you.