Distribution networks are to become digitally controllable

September 11, 2026

Source: E & M powernews

A BBH study shows how distribution system operators must adapt to increased electrification, renewables, and flexible consumers by 2045.

According to BBH Consulting AG (BBHC), distribution network operations must undergo fundamental changes by 2045. A previously predominantly passive transmission infrastructure is to be transformed into a digital, actively controllable, and resilient system infrastructure. This is the conclusion of the study “Distribution System Operators 2045,” which BBHC conducted on behalf of the BBH working group AK REGTP.

For the study, BBHC surveyed 68 representatives from distribution network operators (DNOs) on key challenges and potential solutions. The consulting firm then discussed the results with industry experts and derived target scenarios for distribution network operations in 2045.

The authors identify enhanced monitoring and control of medium- and low-voltage grids as a key task. According to the study, the dynamics and complexity of grid operations are increasing due to growing electrification, the expansion of renewable energy, and a rising number of flexible consumers. Grid operators therefore require detailed local grid knowledge as well as a regulatory framework that enables long-term planning certainty and reliable recognition of the resulting costs.

Digitalization as a Tool

Digitalization is also expected to play a greater role in this context. According to the study, high data quality, powerful interfaces, and clearly defined responsibilities form the foundation for digital twins, AI-supported forecasts, and automated processes. Artificial intelligence (AI), for example, can improve forecasts, automatically validate data, and assess grid situations more quickly.

At the same time, BBH emphasizes that digitalization is not solely a technological task. In addition to the technical infrastructure, the integration of digital applications into existing workflows, clear processes, IT security, and qualified employees are crucial. Even with increased use of AI, the professional review of results and responsibility for decisions must remain with the employees.

Addressing the Shortage of Skilled Workers

The study identifies the shortage of skilled workers in key areas of grid operations as another challenge. According to the authors, smaller distribution network operators (DNOs) in particular could benefit from collaborations and shared structures. This would allow them to better meet the growing demands of digitalization, IT, and grid control. At the same time, grid operations remain a local task in key areas.

“Distribution network operations in 2045 will only be safe and efficient if networks are not only expanded but also made digitally visible, actively controllable, and organized in a resilient manner,” says Peter Bergmann, CEO of BBH Consulting AG and a BBH partner. The interplay of technology, technical expertise, and reliable framework conditions is crucial in this regard.

Christian Theobald, a BBH partner and contact person for the AK REGTP, also sees the role of distribution network operators (DNOs) growing in the context of the energy transition. They are not only relevant to security of supply but also to the energy and heating transitions, as well as to adaptation to climate change. “Public services of the future require modern players, especially at the local level,” says Theobald.

The BBH Group advises over 7,000 clients on legal, business, and strategic matters. Its clients include, in particular, energy and utility companies—such as municipal utilities, municipalities, and local authorities—as well as industrial companies and international corporations.

Author: Susanne Harmsen