Seculex: A Secure Limit Exchange Market For Dynamic Operating Envelopes

Distributed energy resources (DERs) are transforming power networks, challenging traditional operational methods, and requiring new coordination mechanisms. To address this challenge, this paper introduces SecuLEx (Secure Limit Exchange), a market-based paradigm for allocating and trading power injection and withdrawal limits, known as dynamic operating envelopes (DOEs). Under this paradigm, distribution system operators (DSOs) first assign initial DOEs to customers through a fair allocation mechanism. These limits can be exchanged afterward through a market, allowing customers to reallocate them according to their needs while ensuring network operational constraints. We formalize SecuLEx and illustrate DOE allocation and market exchanges on a small-scale low-voltage (LV) network. In this case study, SecuLEx reduces renewable curtailment and improves grid utilization and social welfare compared to traditional approaches.