The European Commission (EC)’s Industrial Accelerator Act (IAA) published on 4 March 2026 marks a significant step in reshaping the European industrial policy and aims to reinforce manufacturing capacity, support decarbonisation, and enhance strategic autonomy. Although primarily targeted industry, the initiative has clear and growing relevance for electricity networks, particularly to DSOs, whose role at the interface of infrastructure and demand might be increasingly affected.
The IAA proposal responds to a context of geopolitical uncertainty, supply chain vulnerabilities and energy prices of volatility, while aiming to boost clean technologies and industrial production within the EU. While the measures are mostly industry-driven, their implementation relies heavily on infrastructure readiness, placing electricity grids in a pivotal position.
The IAA proposal adopts a flexible stance on “European preference“ criteria and avoids excessive constraints on supply chains by extending the definition of Union-origin to include countries with EU trade agreements. It preserves DSOs’ access to a broader supplier base and limits immediate disruption. Nevertheless, the introduction of new sustainability and origin requirements in procurement still represents a structural change with cost and operational implications.
New procurement requirements and their implications for DSOs
A central element of the proposal is the introduction of mandatory criteria for public procurement in selected sectors, including electric vehicles and energy-intensive materials such as steel, aluminium, concrete and mortar, which application is foreseen from 2029.
For DSOs, two challenges stand out : (1) These requirements may translate into higher procurement costs, particularly where compliant materials remain limited or more expensive; and (2) the scope of application remains unclear as several elements of the dispositions leave open whether key grid components are directly concerned. These remaining unclarities are still subject to potential changes during the currently ongoing legislative process.
Yet the proposal includes safeguard mechanisms, allowing exemptions in cases of insufficient supply, lack of suitable tenders, or disproportionate cost increases. Furthermore, compliance obligations are placed on manufacturers through self-declaration, helping contain administrative burdens for DSOs.
Industrial Acceleration Areas: Permitting framework and grid connection
Another key feature is the introduction of Industrial Acceleration Areas, i.e. designated zones within Member States where industrial projects would benefit from simplified permitting and faster deployment conditions. This raises important considerations for DSOs as network development planning will need to anticipate the electricity demand generated in these areas, potentially requiring earlier and more proactive investment decisions. At the same time, the prospect of accelerated grid connection procedures for projects within these zones could intensify pressure on already constrained connection processes. If such areas are defined without sufficient DSO involvement, there is a risk of misalignment between industrial siting decisions and grid capabilities. Furthermore, the proposal blurs the lines between permitting procedures and grid connection agreements, creating legal and operational ambiguity.
Aligning industrial ambition with grid realities
The IAA reflects a broader shift in EU policymaking, where industrial competitiveness and decarbonisation are increasingly intertwined with the availability and performance of energy infrastructure. In this context, electricity grids, and concretely DSOs, are no longer peripheral, but central to the success of Europe’s industrial transition.
For DSOs, this evolving framework brings a dual dynamic. On the one hand, strengthened European manufacturing, especially in net-zero technologies, could improve the availability of key grid components. On the other hand, new procurement requirements, planning obligations and accelerated industrial deployment are likely to intensify pressure on network development and connection processes. Ensuring coherence between industrial policy and grid planning will therefore be critical.
European Commission’s Executive Vice-President Stéphane Séjourné at the press conference for the presentation of the Industrial Accelerator Act, 4 March 2026