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ARTICLE · 21 SEPTEMBER 2026

DSO: From Strategy To Operational Capability

KordaMentha
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Distribution network service providers face a critical challenge: moving Distributed System Operator capability from strategic vision to operational reality. As practical DSO decisions around network capacity allocation and customer connections become increasingly urgent, the focus must shift from policy debates to building the governance frameworks, investment priorities and scalable operating models needed to support Australia's energy transition.

AustraliaEnergy and Natural Resources
Odell Menon
Odell Menon
Swetha Dongre
Swetha Dongre
Tania Yudianto
Tania Yudianto
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In short

Learn how DNSPs can move DSO capability from strategy to practice by prioritising investment, strengthening governance, improving constrained capacity decisions and building scalable operating models for Australia’s energy transition.

Every energy transition debate seems to come back to the same Distributed System Operator (DSO) question: who should perform the role? Is it the network, the retailer, the aggregator or some combination of market participants?

It is an important debate, particularly as the line between generation and distribution continues to shift. As DSO capability matures, decisions about who can import into and export from the grid will become more important. For distribution network service providers (DNSPs), making the case for their role will be critical, not only to secure funding but to shape the future nature of their business. 

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