NACE 35.1 – Electric Power Generation, Transmission and Distribution | Public Tenders

Definition: NACE 35.1 covers the generation of electrical energy from all sources (coal, gas, water, wind, solar, nuclear), its transmission via high-voltage networks and its distribution to end consumers via low- and medium-voltage networks. The group belongs to Section D (Electricity, gas, steam and air conditioning supply) and Division 35.

Legal basis: NACE Rev. 2 (Regulation (EC) No 1893/2006) · Last updated: April 2026

What does NACE 35.1 cover?

NACE 35.1 (Electric power generation, transmission and distribution) classifies electricity industry companies — one of the highest-volume sectors in European procurement law, which falls under utilities procurement law.

Group 35.1 is broken down into three classes:

Companies in NACE 35.1 are generally utility contracting entities under the Utilities Directive (Directive 2014/25/EU), which are subject to a separate procurement regime.

Public Tenders: Electricity Public Contracts

Energy suppliers as utility contracting entities award contracts worth billions each year for grid expansion, power plant technology, IT systems and services — one of the largest procurement markets in Europe.

Typical Contract Types

• Grid expansion and renewal: Laying of high-voltage lines, construction of substations, underground cable installations as part of the energy transition
• Renewable energy installations: Wind turbines, large-scale photovoltaic installations, battery storage — planning, supply and installation
• Measurement and control systems: Smart meter rollout, SCADA systems for grid control, grid control systems
• Public-sector electricity procurement: Municipalities, authorities and public institutions regularly tender the supply of green electricity
• IT and operational data management: ERP systems for energy suppliers, billing software, customer information systems

Relevant CPV Codes for NACE 35.1

Contracting Authorities and Bidders

Public Contracting Authorities and Utility Contracting Entities

Transmission system operators (in Austria: Austrian Power Grid APG; in Germany: TenneT, 50Hertz, Amprion, TransnetBW) are significant utility contracting entities. Municipal public utilities as distribution system operators also tender under utilities procurement law. In addition, public bodies such as federal authorities, federal states and municipalities procure electricity supply contracts under general procurement law.

Bidders and Suitability Requirements

• Specialist authorisation: Concessions for grid operation and energy distribution, regulatory permits where applicable
• Technical capacity: Evidence of specialist personnel (e.g. qualified electricians under BetrSichV, VDE standards), machinery fleet and reference projects
• Financial strength: For major projects (substations, grid expansion), evidence of a minimum annual turnover and guarantees is often required
• Standards conformity: DIN VDE standards, IEC standards for electrical equipment

FAQ

Are energy supply companies subject to general or utilities procurement law? Companies that generate, transmit or distribute electricity are utility contracting entities under the Utilities Directive (2014/25/EU). They are subject to more flexible procurement rules but must tender EU-wide above the utilities thresholds (EUR 431,000 for supply and service contracts, EUR 5,538,000 for works contracts, as of 2024/2025).

How is green electricity procured for public buildings? Authorities and public institutions tender electricity supply contracts as supply contracts. Sustainability criteria such as evidence of guarantees of origin (HKN) for renewable energies can be set as a technical requirement or award criterion. Framework agreements via central purchasing bodies are common.

NACE 35.1 in context: Section D and Division 35

• NACE D – Electricity, gas, steam and air conditioning supply: Parent section
• NACE 35 – Electricity, gas, steam and air conditioning supply: Parent division
• NACE 35.2 – Manufacture of gas; distribution of gaseous fuels through mains: Adjacent group
• NACE 35.3 – Steam and air conditioning supply: Further group in Division 35

Last updated: April 2026 All information is provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.