ENTSO-E and DSO Entity Call for Procurement Reform to Speed Grid Tech

EU Grid Procurement Reform seeks flexible, innovation-friendly tenders with non-price criteria to accelerate access to grid technologies for TSOs and DSOs, strengthen competition, and support long-term contracts aligned with Europe's decarbonization and security goals.

On February 20, 2026, Europe's transmission and distribution operator associations released a joint statement urging targeted changes to public procurement so grid companies can access critical technologies faster and at lower total system cost. The appeal centers on modernizing rules to reward innovation and responsiveness, rather than relying solely on price, with the goal of accelerating equipment rollouts that support reliability and decarbonisation. The direction aligns with grid modernization initiatives underway across the sector today.

A primary focus is on making it easier to procure proven and emerging grid technologies by streamlining procedures and applying voluntary non-price criteria where appropriate. The statement cautions against unintended consequences from overly rigid, mandatory requirements that can exclude fit-for-purpose solutions. It also stresses the need to consider the maturity of a given technology when designing tenders, so that sustainable, high-performance options are incentivized without imposing disproportionate administrative burdens on suppliers or network companies.

The organizations call for a fit-for-purpose framework able to adapt to market dynamics. They highlight the value of negotiated procedures where justified, more adaptable tender processes, and greater flexibility for long-term contracts that reflect lifecycle performance and service outcomes. Such measures would facilitate digital, data-driven operations across the digital grid, helping operators procure capabilities that enhance observability, control, and interoperability across multiple voltage levels.

To strengthen value for money, the statement backs reforms that boost competition and cost-effectiveness. Among the proposals are higher threshold values to streamline smaller procurements, explicit room for innovation-friendly approaches, and steps to expand production capacity across the supply chain. These aims are particularly relevant for long-lead infrastructure, including converter stations and cables associated with cross-border projects on the europe hvdc buildout, where timely, scalable sourcing is essential for program delivery.

The joint position connects procurement flexibility with real-world asset performance. By emphasizing outcome-based evaluation and technology-appropriate requirements, buyers can better specify equipment and services, from substation controls to digital transformers, in ways that encourage interoperability, cybersecurity, maintainability, and whole-life cost efficiency. The approach seeks to reduce transaction frictions while preserving transparency and competition, thereby allowing grid companies to align procurement pipelines with system planning milestones.

Finally, the statement warns that without targeted reform, Europe risks missing both decarbonization and energy security objectives. More agile procurement would help synchronize investment decisions with connection queues, reinforcement needs, and system services markets. The urgency of aligning rules with on-the-ground realities is reflected in sector discussions about congestion and integration challenges featured in analyses like netherlands grid crisis over renewables, underscoring why clearer, more flexible procedures can accelerate delivery while safeguarding value for consumers and industry.

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