NACE D – Electricity, Gas, Steam and Air Conditioning Supply | Public Tenders

Definition: NACE Section D covers the generation, transmission and distribution of electricity as well as the production and distribution of gaseous fuels and heat. Energy utilities are frequently classified as utility contracting entities under procurement law and are therefore subject to specific procedural rules.

What does NACE D cover?

Division 35 is broken down into the following groups:

• 35.1 – Electric power generation, transmission and distribution (including trade)
• 35.2 – Manufacture of gas; distribution of gaseous fuels through mains
• 35.3 – Steam and air conditioning supply (district heating, district cooling)

Public Tenders in Energy Supply

Energy procurement is one of the largest contract areas in public procurement. Public authorities, schools, hospitals and municipalities procure electricity, gas and district heating each year through competition. At the same time, energy utilities — as utility contracting entities — tender works and service contracts for infrastructure projects.

Typical Contract Types

• Electricity supply contracts: Procurement of electricity for public buildings, street lighting and operation of facilities
• Gas supply contracts: Natural gas supply for heating and process energy in public buildings
• Heat supply (district heating): Long-term heat supply contracts for municipalities and public institutions
• Renewable energy projects: Tenders for photovoltaic installations and wind projects on public land
• Grid construction and maintenance: Line construction, transformer stations and grid upgrading by utility contracting entities
• Energy audits and consulting: Mandatory audits under energy efficiency legislation, energy management consulting

Thresholds

In the energy sector, utility contracting entities benefit from higher thresholds: supply and service contracts from EUR 443,000, works contracts from EUR 5,538,000 (2024/2025). Classical contracting authorities procuring energy are subject to the general thresholds (supply contracts: EUR 221,000).

Common CPV Codes

Contracting Authorities

• Municipalities and municipal utilities: Procurement of electricity and gas for municipal properties and street lighting
• Federal authorities: Central energy procurement via federal procurement agencies (BBG, BeschA)
• Hospitals and schools: Independent energy procurement or participation in framework agreements
• Energy utilities as utility contracting entities: Award of grid construction works, IT systems, metering infrastructure
• Regional governments: Tendering of green-electricity supply and energy-efficiency projects

FAQ

How are electricity supply contracts tendered publicly? Electricity supplies are usually tendered under the open procedure or via framework agreements. Central buyers (BBG, KdB) pool demand from several authorities. Bidders typically need to be licensed energy suppliers and to provide evidence of supply capability. Key platforms: TED and national procurement portals.

What applies to energy utilities as utility contracting entities? Energy utilities that operate networks are subject to the utilities procurement regime (SektVO / BVergG 2018 utility part). They enjoy greater procedural flexibility but face higher thresholds. Typical contracts: grid works, metering infrastructure, network control IT systems.

What requirements apply to the procurement of renewable energy? Contracting authorities may define sustainability criteria in tenders, for instance sourcing from renewable sources (guarantees of origin, RES certificates). This is permitted under procurement law and is expressly supported by EU Directive 2014/24/EU.

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