As more customers choose electric vehicles and other energy-smart home appliance options, this has the potential to significantly increase the amount of electricity that the distribution network (also known as the grid) needs to carry. This can be managed by upgrading the network’s infrastructure, but this is very costly and ultimately this cost would be paid for by all electricity customers.

Or, we can make better use of what we have instead, through what’s called a ‘flexible network connection’.

Flexible network connections:

  • are a more efficient use of our existing grid infrastructure
  • help avoid network outages that could occur from more electricity than the grid can handle; and
  • reduce the need for extensive upgrades of grid infrastructure, saving all customers money in the long-term.

Previously customers would only have the option of a ‘fixed’ connection to the distribution network, or grid, where a set amount of electricity could be brought in (‘imported’) or sent out (‘exported’).

A flexible network connection is different, as a household’s import and export limits can change depending on the network conditions and capacity. For customers with a flexible network connection, the distribution network can communicate directly to a home energy management system (HEMS) like the one provided to all Energy Masters households, to signal the maximum amount a household can import and export for that short interval.

This calculation includes base usage like lights, or non-flexible appliances like cooktops, but only flexible devices opted-in to optimisation through the HEMS will be able to respond to the signal.

Most of the time, household energy imports and exports are expected to be well within the limits of the flexible network connection. However, in times of network congestion, they become especially helpful to supporting the broader energy system.

How does a flexible network connection work?

A flexible network connection is made up of a time-varying ‘import limit’ and an ‘export limit’. These limits change over time in response to grid conditions and are able to be updated at short intervals, which is why we call this type of connection ‘flexible’.

For households with a flexible connection, a smart optimisation device like a HEMS will automatically respond to these limits. This could be achieved by managing the timeframes when flexible appliances operate, the settings they operate under, or how much electricity they use from the grid compared to drawing electricity from any solar and/or battery at the house.

Only smart appliances that a household ‘opts in’ (such as solar, hot water systems, electric vehicle chargers, smart air conditioners and home batteries) will respond to the import and export limits. No restrictions will be placed on any other energy use in the home.

A helpful way to think about it is a variable speed limit depending on the time of day or road conditions, as opposed to a single low-speed limit at all times – the zones allow periods where higher speeds could occur without comprising safety.

Flexible exports: households can export electricity back to the grid at higher levels most of the time, while agreeing to have exports reduced on rare occasions of network congestion.

Flexible imports: households can ‘opt-in’ flexible appliances whose use can be shifted to different times of day or use more energy efficient settings (e.g. a small temperature change on an air-conditioner). Appliances opted-in are the only ones who will respond to these import limits, and households will be rewarded through network and retail tariffs for supporting the grid in this way.

What are the benefits of flexible network connections?

Households who choose to participate in flexible network connection offers benefit from greater capacity to export from their solar and battery system most of the time, and will be rewarded through their retail offer for their contribution to supporting the grid via flexible imports.

At scale, flexible network connections will benefit all South Australians by:

  • Allowing higher electricity demand without the need for expensive network infrastructure upgrades, putting downward pressure on electricity prices for all customers.
  • Establishing a dynamic and more resilient ‘future-proof’ electricity network.
  • Supporting customers to shift their energy use to cheaper times of the day.

What does this mean for Energy Masters households?

For Energy Masters households, their Clipsal Cortex HEMS will automatically respond to these limits to optimise the home’s energy use. This could be achieved by managing the timeframes when flexible appliances operate, the settings they operate under, or how much electricity they use from the grid compared to drawing electricity from any solar and/or battery at the house.

Only smart appliances connected to the HEMS (such as solar, hot water systems, electric vehicle chargers, smart air conditioners and home batteries) will respond to the import and export limits, with no restrictions placed on any other energy use in the home.

Energy Masters households can always opt-out from specific appliances responding to the flexible connection, but by opting in you will be rewarded for your contribution through a credit from SA Power Networks that participating retailers will pass on through their offers.

A flexible connection provides just one of the signals that a HEMS can use when managing home energy use. HEMS devices can also factor in things like:

  • the household’s pre-programmed usage settings and preferences
  • the cost of electricity at certain times of day
  • any excess solar being generated, or spare battery capacity that could be used.

This sounds familiar

You may have already heard of the ‘export’ part of a flexible connection through SA Power Networks’ flexible exports program. The flexible exports option provides limits that automatically adjust to maximise exports only, based on prevailing network conditions.

Since the release of flexible exports in July 2023 SA Power Networks have seen a highly positive response from both customers and the solar industry, with more than 85% of eligible customers choosing flexible exports over a fixed export limit. Energy Masters aims to build on the success of flexible exports, to now combine flexible export limits with flexible import limits.

In addition to saving you money, your contribution will help reduce the need for network upgrades, reducing energy costs for all South Australians.