For decades, the    transmission and distribution (T&D) sector has been shaped by large utilities, transmission system operators (TSOs) and original equipment manufacturers (OEMs) delivering electricity infrastructure at scale. At the heart of Europe’s energy transition, Germany is leading an unprecedented effort to electrify industry while preserving grid stability and security. Here, Alex Koidis, Head of Community at CWIEME, explores how German firms are helping modernise the grid at every step of the supply chain.

With an increasing proportion of energy coming from renewable sources, Europe’s electricity networks face an unprecedented challenge. In 2023, the EU Joint Research Centre reported that higher shares of wind and solar generation would increase volatility and that Europe’s electricity system would require up to seven times more flexibility to ensure functioning grids. Such volatility raises the demand for safe and reliable infrastructure across the T&D sector, as well as innovation throughout the supply chain.

Meanwhile, transporting power across Europe involves a wide range of specialists, each with a defined role in keeping electricity flowing safely and securely. At a system level, TSOs are responsible for planning, building and operating high-voltage infrastructure that links energy generation assets to major demand centres.

The next step in the supply chain is large OEMs, who design and produce major assets like transformers and substations for TSOs to integrate. At this level, companies spend significant time ensuring complex assemblies of components, software and control systems are certified for compliance with grid standards across Europe.

Finally, equipment manufacturers and specialist technology suppliers ensure grid equipment is readily available and produced according to strict efficiency and lifetime requirements. These could be large-scale factories producing the heavy electrical equipment required to step voltage levels up and down, or a group of small and medium-sized enterprises (SMEs) applying innovative solutions to unique demands.

Germany’s key players

TSOs define the long-term strategies that shape the downstream supply chain. Investments like the €1.9 billion agreement secured by TenneT in 2023 mark the kind of commitment to the energy transition that is required of operators to drive development in the T&D sector. Germany's largest high-voltage grid operator aims to supply state-of-the-art substations as part of a system overhaul to ensure a reliable and resilient electricity grid.

Part of this framework agreement has TenneT working with one of the biggest providers of grid technologies, Siemens Energy. The Germany-based OEM supplies high-voltage equipment, transformers and digital solutions that support long-distance power transmission and the integration of renewable generation at scale. With global experience, it is equipped to reinforce existing networks and cross-border interconnections as electricity flows become more decentralised and bidirectional.
 

Also situated in Germany and part of the same investment is manufacturer SGB-SMIT, whose transformer technologies are essential in stepping voltage levels up and down across networks. As grid loads increase and operating conditions evolve, demand is growing for transformers that deliver higher efficiency, lower losses and improved resilience.

The role of the Mittelstand

Companies that remain flexible and have their ears to the ground can adapt better to the volatility associated with distributed energy resources (DERs). Collectively known as Germany’s Mittelstand, this group of SMEs helps form the technological backbone of Europe’s grid.

According to the Institut für Mittelstandsforschung (IfM Bonn), German SMEs collectively employ around 19 million people, representing over half of total employment in the country. They also contribute over 55 per cent of total net value added to the German economy, highlighting their role as both job creators and value producers.

Flexibility and collaboration in a changing grid

SMEs bring a level of agility that larger organisations often struggle to match. As new technologies emerge across the renewables sector, smaller engineering teams are better equipped to quickly adapt designs, materials or production methods. This adaptability complements the scale and system-level capabilities of large OEMs and TSOs.

When it comes to grid projects, supply chains are increasingly under pressure to localise production, reduce emissions and improve resilience. While this creates opportunities for European manufacturers, it also raises expectations around transparency, lifecycle data and environmental performance — areas where support and collaboration become critical.

One proven route for overcoming these barriers lies in collaboration not only between SMEs, OEMs and TSOs, but across the entire electrical engineering ecosystem. Partnerships allow smaller firms to pool expertise, share risk and collectively meet the requirements of large-scale grid projects.

Industry platforms and specialist events like CWIEME Berlin play a vital role here. As the global meeting place for transformer, motor and e-mobility innovators, the exhibition brings together material suppliers, component manufacturers, machine builders and system integrators to shorten the distance between innovation and application. 

Increasing visibility to smaller firms benefits all parties involved, as it enables them to demonstrate niche expertise, align developments with real-world requirements and build the relationships needed to scale effectively. With a dedicated Transmission & Distribution Club, CWIEME Berlin offers a premium space for cross-sector pollination between SMEs and recognised industry leaders.

Engineering the future of Europe’s grids

The Mittelstand has already proven to be a big part of Germany’s economy. As Europe works towards climate neutrality and net-zero, the T&D sector depends on the thousands of specialised companies delivering their components, materials and manufacturing expertise to help meet increasing demand.

Success of the transition will require cooperation across all levels of the supply chain. Together, these organisations are reshaping Europe’s electricity networks and laying the foundations to support industrial and climate ambitions.

Visitors can connect with the T&D ecosystem at CWIEME Berlin 2026 from May 19-21, including companies like, TenneT, Siemens Energy, SGB-SMIT, SEW-EURODRIVE and VEM Group GmbH. Discover the reasons to attend.