2025/07/15 - Through a comprehensive procurement initiative, E.ON is ensuring the progress of the energy transition in Germany for this decade and beyond. To this end, long-term contracts have been concluded with German and European manufacturers for core components to expand and modernize the grid infrastructure. The procurement volume for transformers, switchgear and local network stations as well as medium- and low-voltage cables reaches a total of more than six billion euros.
The scope of the procurement includes, among other things, more than 100,000 kilometers of medium- and low-voltage cables, several 10,000 digital local network stations, more than 500 medium-voltage circuit breaker systems for substations, and around 29,000 distribution and power transformers. By integrating these components into the German distribution grid, E.ON is enabling the connection of numerous wind and solar farms, the further ramp-up of electromobility and heat pumps, as well as battery storage systems and data centers.
Thomas König, Chief Operating Officer Networks in the Management Board of E.ON, emphasizes: ”Massive investments and at the same time consistent standardization and digitization are our central contribution as a grid operator to advance the energy transition in Germany and make it economical. Our long-term procurement strategy is an important part of our commitment to being a playmaker in the energy transition. In the long term, however, we can only make this contribution if the regulatory framework conditions are right.”
Focus on standardization and digitization
A central part of the procurement initiative is the standardization of components. The reduction of technical variants improves the planning and the production processes for manufacturers. In addition, there will be an overall acceleration of grid expansion and modernization. E.ON is thus taking on a pioneering role and paving the way for potential industry standards.
With its stable supply chain, E.ON is also striving for further digitization of its grid and system landscape. In addition to constructing digital local network stations, E.ON will standardize the control systems of its distribution system operators in Germany by 2029. The decentralized energy system of the future requires a new form of grid control that is based even more on real-time data. Digital components ensure reliable grid operation at all grid levels, even with a sharp increase in decentralized feed-in and new consumers.
European value creation ensures affordability and jobs
The procurement initiative makes an important contribution to limiting the costs of the energy transition. This includes a high procurement volume, joint process optimization, the standardization of components and long-term contracts. The newly concluded contracts provide manufacturers with the security they need to plan production and investments, for example in new plants or production lines. Most of the components are produced in Germany and other European countries, which secures and creates new jobs in the supplier industry.
Strategic partnerships for investments
The initiative is based on a new procurement strategy by E.ON for core grid expansion components. In partnership with suppliers, E.ON developed solutions and optimized procurement and processes. The contracts with the suppliers have been designed flexibly to allow for regular product development and the adaption of technical innovations at any time.
