Germany energy networks company E.On has signed £6 billion in long-term contracts with European manufacturers of electricity network components. The announcement highlights competition to secure supplies of such equipment across countries who are decarbonising their electricity grids and electrifying industry sectors on the route to Net Zero, and reinforces Ofgem’s decision to allow GB companies to secure equipment ahead of time in an ‘Advanced Procurement Mechanism’ (see details).
E.On said it had secured long-term contracts with German and European manufacturers for components including transformers and switchgear as well as medium- and low-voltage cables. The procurement includes more than 100,000km of medium- and low-voltage cables, tens of thousands of digital local network stations, more than 500 medium-voltage circuit breaker systems for substations, and around 29,000 distribution and power transformers. The German network operator said a high procurement volume, joint process optimization, the standardization of components and long-term contracts would help keep costs down.
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 addition to constructing digital local network stations, E.ON will standardize the control systems of its distribution system operators in Germany by 2029.