Abstract: Dynamic power limitation functionality described herein can be used to continuously calculate a maximum allowed power dissipation for a welding power supply. The maximum allowed power dissipation can be less than a maximum possible power dissipation. The calculated maximum allowed power dissipation can then be used as a dynamic boundary condition for a welding process functionality. The maximum allowed power dissipation can be determined based on temperature so as to enable higher output currents when the power supply operates at lower ends of a temperature scale. Information provided from an output inverter and an input power factor correction (PFC) module can provide inputs for calculating the maximum allowed power dissipation. Information provided by the inverter and the PFC module can include both static design parameters and dynamic sensor information.