Digital Grid Insights 2025: Digitalization of Distribution Networks in DACH
One year after the first survey, it is clear: The digital transformation of distribution networks is stalling. More than half of the surveyed companies (61%) classify themselves at a digitalization level below 50%. While technical foundations have improved, network operators have so far only partially succeeded in deeply automating processes and interconnecting systems.
Executive Summary: Digitalization in Reality Check
The "Digital Grid Insights 2025" study was conducted jointly with Envelio and energate and includes over 130 decision-makers from Germany, Austria and Switzerland. The results clearly show: The digitalization level in distribution networks is stagnating, even though time is running out.
of network operators see themselves at a digitalization level below 50%
of companies have an automation level below 50%
of surveyed companies already use Artificial Intelligence
of network operators already use a digital twin
Digitalization stagnates: No measurable leap visible
Neither in digitalization level nor in automation is a measurable leap visible this year – even though time is running out. The majority of respondents are in an "active implementation mode" but not yet in the maturity phase.
Only 8% of companies see a high maturity level of over 75%. The "digital middle" dominates. This development can be interpreted as an expression of sluggish digitalization progress.
Compared to the previous year, there is no positive development: In 2024, even fewer companies (54%) saw themselves at a digitalization level below 50%, though with a smaller sample. With the larger sample in 2025 (109 instead of 68 participants), a more representative picture emerges.
Automation lags behind digitalization
The need for action is particularly evident in the area of automation. Although many companies have introduced digital systems, the automation level in operational network management remains low.
Low Automation
69% of companies report that their automation level is below 50%. Only 6% have largely automated their processes.
Early Implementation Phase
The industry in Germany is in an early implementation phase: Technologies are available, but integration into operational processes is stalling.
Country Comparison
Austria has the highest proportion of highly automated companies (19%), Germany stagnates in the lower middle range, while Switzerland has the highest proportion of very low automated companies (47%).
AI is gaining ground – but only rudimentarily
At the same time, the topic of Artificial Intelligence (AI) is on the rise: Over 70% of surveyed organizations are gaining initial experience with AI. However, mostly as a supporting tool, not as an integral part of process control or network planning.
72.5% use AI
The majority of surveyed companies report using Artificial Intelligence such as language models (Large Language Models, LLM).
Point Use
AI is used rather pointwise and as a "useful add-on", but not as an integrated element in processes.
Next Step
The next step will be to develop AI from an add-on technology to a central component of processes.
Knowledge and Integration as Bottlenecks
The biggest challenges of digital progress remain human and structural in nature. Financial factors are taking a back seat – it's less about investment capacity and much more about competencies and the integration capability of existing IT landscapes.
Internal know-how and expertise are cited by the majority as the biggest hurdle. This indicates a skills shortage.
Insufficient technical integration into existing systems remains a structural persistent problem without noticeable relief.
IT security experiences by far the largest increase in importance as a challenge (+22 percentage points compared to 2024) – a sign of growing cyber risks in the energy sector.
Digitalization is thus increasingly becoming an organizational task: Those who want to succeed must break down silos, standardize data flows and build knowledge in the company, even in times of personnel shortages.
Network Planning: Digital Twins as Foundation
The digitalization of technical processes is still progressing slowly. Although a digital twin of the network is the foundation for many digitalization and automation topics, it is currently only implemented in 41% of participating companies.
of distribution network operators plan long-term target networks today
of those who do not currently use a digital twin are planning its implementation
of surveyed organizations use AI-supported models for target network planning
The biggest long-term challenges in network planning according to German participants are: political uncertainties (64%), unclear regulatory requirements (61%) and data availability (60%).
PlanOps: Potential Recognized, but Implementation Stalls
A central future topic is the stronger integration of network planning and operations ("PlanOps"). The concept meets with high approval: Almost 80% of German network operators see great potential in collaboration between planning and operations.
Institutionalization
Almost half of the surveyed companies (48%) have already institutionalized this collaboration. 32% even have dedicated PlanOps roles.
Data is Being Used
87% already use operational data sources for planning. However, data only flows back automatically into planning for about half of the respondents.
High Potential
Almost 80% of German network operators see great or very great potential in PlanOps. However, implementation is still in its early stages in many places.
The trend suggests that PlanOps could develop into a decisive lever for efficiency and speed in the coming years. With regard to the upcoming NEST determination by the Federal Network Agency, PlanOps will become even more important in the future.
Regulatory Framework: Between Ambition and Reality
Political pressure remains palpable: More than half of respondents (57%) still perceive regulatory requirements as a major challenge. At the same time, implementation of central requirements is progressing slowly.
Implementation Status of Central Requirements
- § 14a EnWG (Control of Flexible Consumers): Only 4% fully implemented
- § 12 EnWG (Controllability Proof): Only 9% fully implemented
- § 9 EEG (Technical Requirements for Feed-in): Only 11% fully implemented
This discrepancy between ambition and reality is alarming. Particularly critical is that many operators already expect bottlenecks and control needs within the next three years: 41% of surveyed companies see a high to very high need to control consumers, and 51% agree to a high need to control feed-in sources.
Flexible Connection Agreements (FCA)
Flexible Connection Agreements remain a niche topic: Only 12% implement them, 21% are examining them. In Switzerland, the concept seems to be better known but is hardly applied, while Austria shows more openness here.
Outlook: The Digital Middle as Comfort Zone or Springboard?
Digital Grid Insights 2025 shows that the industry is at a threshold: Either the leap to digital depth succeeds now, with automated processes, interconnected data models and AI-supported control, or the digital middle becomes the new comfort zone.
The biggest challenges lie in:
- the integration of systems and data
- building internal competencies and expertise
- the use of AI and Digital Twins as enablers of flexible network operation
The coming years will be decisive for whether the energy industry succeeds in making the step from the pilot phase to comprehensive implementation. Because only when data, systems and people work together will the digitalization of networks become a real success factor for the energy transition.
Germany has good prerequisites to master these challenges if it succeeds in bridging the gap between digitalization and automation. The focus will likely shift even more strongly to integration, interoperability and data quality.