In May 2026, DSO Entity published a new report on procurement and supply chain practices among European Distribution System Operators (DSOs). The report contributes to the implementation of Action Point 13 of the European Commission’s Grid Action Plan (2023).
The report provides an evidence-based assessment of how current DSO procurement practices support supply chain resilience, innovation, framework sustainability and efficiency in the context of accelerated grid deployment across Europe. It also identifies regulatory, administrative and market barriers affecting procurement efficiency and puts forward targeted recommendations to improve the functioning of the EU procurement framework for the electricity distribution sector.
The analysis is based on a comprehensive data collection exercise conducted among DSO members through two structured questionnaires. The exercise gathered operational insights into procurement procedures, supply chain challenges and practical recommendations from participating Member States.
Main findings from the report
The findings show that European DSOs have developed increasingly mature and strategic procurement practices. Framework agreements, structured supplier monitoring systems, digital procurement tools and sustainability criteria are now widely integrated into procurement processes.
At the same time, the report highlights several persistent challenges affecting supply chain resilience and procurement efficiency, including fragmented national regulatory frameworks, limited interoperability between procurement systems, heavy administrative burdens and insufficient flexibility within procurement procedures. DSOs also continue to face broader structural market constraints, such as limited manufacturing capacity for critical grid components, increasing delivery times for transformers, cables and digital equipment, as well as growing resilience and security requirements for strategic assets.
The report underlines the importance of pragmatic and targeted measures to address these challenges, among others:
- greater equivalence of procurement documentation and its potential mutual recognisition
- improved interoperability of digital procurement systems,
- better alignment of sustainability requirements,
- proportionate regulatory flexibility adapted to the operational realities of grid investments.
As an increasing share of renewable generation, electrified demand and decentralised flexibility connect at distribution level, DSOs are expected to deliver unprecedented levels of infrastructure investment while operating within highly regulated procurement frameworks.
Strengthening supply chain resilience in the electricity distribution sector will therefore depend on improving coordination and alignment across existing systems, reducing unnecessary administrative burdens and enabling more flexible and interoperable procurement practices throughout the European Union.
The full report is available here.