E.ON: Strengthening Energy Transition Through Procurement

Harnessing a procurement initiative, E.ON is making sure there is good progress in energy transition across Germany in this decade and the future.

To ensure this is done, the energy company has secured long-term contracts with manufacturers in Germany and across Europe for a range of core components to both expand and modernise the infrastructure of the grid.

Procurement volumes for transformers, switchgear and local network stations, as well as both medium and low voltage cables, have hit a total of more than €6bn (approx US$6.9bn).

The scope of this procurement operation includes a range of items, including over 100,000 kilometres 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.

Through these components being integrated across the distribution grid in Germany, 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 centres.

Thomas König, Chief Operating Officer Networks in the Management Board of E.ON, says: "Massive investments and at the same time consistent standardisation and digitisation 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 standardisation and digitisation

A core aspect of this procurement initiative is seeing components being standardised.

Through the reduction of technical variants, it will improve the planning and the production processes for manufacturers, as well as seeing the overall acceleration of the grid's expansion in order for it to become more modern.

Therefore, E.ON is taking on this pioneering role and paving the way for a potential industry standard.

E.ON can also rely on its stable supply chain, which is allowing it to make strides in its effort to further enhance the digitisation of its grid and system landscape, as well as building digital local network stations.

Through this, E.ON will see a control system become standardised across its distribution systems operations in Germany by 2029.

This decentralised energy system of the future requires a new form of grid control which is based even more on real-time data.

These digital components ensure reliable grid operations across all the grid levels – even with a sharp increase in decentralised feed-in and new consumers.

European value creation ensures affordability and jobs

This procurement effort is also making a vital contribution to limiting the cost when it comes to energy transition, including a high procurement volume, joint process optimisation, the standardisation of components and long-term contracts.

While these newly concluded contracts give manufacturers the security required 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 has developed solutions and optimised procurement and processes.

The contracts with suppliers have been designed flexibly to allow for regular product development and the adaptation of technical innovations at any time.

The selected suppliers include the following companies:

• ABB AG
• BEZ Transformátory, a.s.
• ELATEC Power Distribution GmbH
• ELSIC Elektrische Sicherheitsausrüstungen und Betriebsmittel GmbH
• ENACO Energieanlagen- und Kommunikationstechnik GmbH
• Ernst Wirth GmbH Co. KG
• GRÄPER Ahlhorn GmbH & Co. KG
• GRITEC GmbH
• Hellenic Cables S.A
• Hitachi Energy Germany AG
• Kolektor Etra d.o.o
• Končar – Distribution and Special Transformers Inc
• Lemi Trafo JSC
• NATUS GmbH & Co. KG
• NKT GmbH & Co. KG
• Prysmian
• RITTER Starkstromtechnik GmbH & Co. KG
• Sächsisch-Bayerische Starkstrom-Gerätebau GmbH
• Scheidt GmbH & Co. KG
• Schneider Electric GmbH
• Siemens AG
• Siemens Energy AG
• Starkstrom-Gerätebau GmbH
• Südkabel GmbH
• TELE-FONIKA Kable S.A.
• Transformare GmbH
• uesa GmbH
• Waskönig + Walter Kabel-Werk GmbH u. Co. KG
• Witthinrich GmbH