Germany, Essen: E.ON has announced a comprehensive procurement initiative in order to ensure the progress of the energy transition in Germany. The company has concluded long-term contracts with German and European manufacturers for core components to expand and modernize the grid infrastructure. The procurement volume reaches a total of more than €6 billion ($6.97 billion).
The scope of the procurement includes around 29,000 distribution and power transformers, over 100,000 kilometers of medium- and low-voltage cables, 10,000 digital local network stations and over 500 medium-voltage circuit breaker systems for substations. The integration of these components into the distribution grid will facilitate the connection of wind and solar farms, the further ramp-up of electromobility and heat pumps, as well as battery storage systems and data centers.
A key part of the initiative is the standardization of components. The reduction of technical variants improves the planning and the production processes for manufacturers. There will also be an overall acceleration of grid expansion and modernization. In addition to constructing digital local network stations, E.ON will also standardize the control systems of its distribution system operators in Germany by 2029.
The initiative contributes 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 contracts provide manufacturers with the security they need to plan production and investments. Most of the components will be produced in Germany and other European countries.
In partnership with suppliers, E.ON has developed solutions and optimized procurement and processes. Contracts have been designed to allow for product development and the adaption of technical innovations. Among the selected suppliers are companies such as Hitachi Energy Germany AG, Končar – Distribution and Special Transformers, Schneider Electric GmbH, Siemens Energy AG and Prysmian.
Source: E.ON
