HomeElectricityEngineering capacity shift for Germany’s substations and transmission upgrades via Serbia

Engineering capacity shift for Germany’s substations and transmission upgrades via Serbia

Supported byClarion Energy

Germany’s grid build-out for the energy transition includes new substations, reinforced transmission corridors and modern protection and control systems. The work also involves connecting renewable generation while replacing ageing infrastructure. At the same time, engineers capable of designing these assets are scarce, project pipelines are crowded and approval requirements continue to grow.

One response discussed in the region is to look south-east. Serbia has an engineering base with experience in power systems, civil structures and overhead-line design, alongside competitive costs. It is close enough to Germany for frequent travel, operates within the same working day and works within a technical culture shaped by European standards.

Cross-border engineering production versus accountable authority

The model proposed is to move part of the engineering workload to Serbia while having final documents verified by a suitably qualified engineer in Germany. In principle, this can be done, but the phrase “final verification” covers more than document signing. The practical challenge is linked to how engineering responsibility is assigned across jurisdictions.

Supported byVirtu Energy

Germany does not have a single national equivalent of an American professional engineer’s stamp for every electrical drawing. The required authority depends on the document type, the federal state and the approval procedure. Structural calculations, building submissions and fire-safety documents may require registered designers or independent checking engineers, while much electrical design relies on company responsibility, contractual appointments, grid-operator approval and compliance with VDE rules.

The legal framework referenced is Section 49 of Germany’s Energy Industry Act, which requires energy installations to be safe and to follow generally recognised rules of technology. Compliance with VDE technical rules creates a presumption that this obligation has been met. The principle does not require every calculation to be performed in Germany, but it does require the releasing entity to demonstrate how compliance was achieved.

This distinction supports an operating model where engineering production can cross borders without shifting accountable engineering authority. A Serbian subcontractor may prepare equipment layouts, cable schedules, protection drawings, bills of quantities, tower calculations, line profiles and foundation designs. It may also perform much of the specialist analysis, while the German or EU prime contractor establishes the design basis, selects applicable standards and national annexes, manages interfaces with authorities and network operators, and controls release of final documents.

The Serbian company is expected to function as part of an integrated design office rather than operating as a remote drawing factory. The arrangement is described as dependent on process quality because a German signature cannot correct inadequate engineering work. A reviewer receiving large volumes of drawings shortly before deadlines without access to underlying models or assumptions is not meaningfully verifying design content.

Design basis controls: deliverables register and evidence

A defensible system is described as starting before the first drawing is produced. Each deliverable should have an identified originator, checker, approver and, where necessary, a statutory signatory. The project should maintain a controlled register covering German law, DIN and VDE standards, German national annexes and network-operator requirements.

Calculation software and versions are expected to be approved as part of configuration control. Design inputs should have recorded owners and status throughout the process. Native calculation files are described as needing to remain accessible to the responsible engineering organisation rather than relying only on exported PDFs.

Two management channels are outlined for controlling delivery quality and compliance evidence. Project management covers scope, resources, schedule, interfaces and commercial change using tools such as a deliverable register, integrated programme, responsibility matrix, interface register and decision log. Progress should be measured by completed and accepted outputs rather than hours spent.

Quality management covers competence, checking activities, compliance verification, configuration control and evidence generation. It should include a separate escalation path with authority to stop document release when needed. The approach also specifies that schedule pressure must not remove the independence of technical checks.

Risk-based checking for different document types

The scrutiny level is described as varying by document category rather than applying uniform checks across all outputs. Routine schedules or drawing updates may be suitable for self-checking with sample review. Equipment sizing and control schematics are described as requiring documented peer checking alongside German discipline review.

Tower stability assessments, foundations design work, earthing safety analysis, short-circuit force evaluation and protection settings are described as requiring independent verification. In some cases this includes separate calculations beyond initial analysis packages. The risk-based approach is contrasted with duplicating all engineering hours in Germany or trusting all work equally.

Cost metrics and interface-driven rework

Serbia’s role in capacity provision is described as addressing recruitment constraints in Germany for engineering talent needed for substations and transmission lines. Work can proceed in parallel across projects and disciplines using standardised packages scaled across programmes of substations or transmission lines. Geographic proximity supports workshops and site visits during delivery.

The cost impact is described as less automatic than procurement presentations suggest because lower hourly rates can be offset by incomplete inputs, repeated reviews, translation issues and poorly managed interfaces. Rework is described as often driven less by technical incompetence than by organisational distance between assumptions used by different parties involved in equipment selection or network-operator activities.

The metric highlighted for evaluating the arrangement is total accepted engineering cost rather than the subcontractor’s hourly rate alone.

Procurement constraints for direct contracting from Serbia

Procurement considerations are cited in relation to whether a Serbian company bidding directly for a regulated utility contract has comparable EU-law rights to an operator from an EU member state or from a country covered by an applicable reciprocal procurement agreement. The European Court of Justice confirmed in its 2024 Kolin judgment that operators from non-covered third countries cannot automatically claim equal treatment under the EU utilities procurement directive.

Subcontracting through a German or EU prime contractor is described as often more practical but requires transparency in tender processes. Tender conditions may require disclosure of the subcontractor, demonstration of competence and approval for changes during delivery. Security-sensitive grid information may also be subject to contractual or regulatory restrictions that affect how subcontracted work can be performed .

Qualification steps: pilot packages before scaling

The route described as most prudent starts gradually with qualification of Serbian partner personnel, systems, references and insurance by the German firm. A bounded pilot package follows with measurable acceptance criteria before any broader expansion of cross-border production . Expansion depends on observed first-pass quality outcomes including rework levels, communication costs and responses to review comments.

If pilots succeed they can evolve into a binational engineering office using common templates, shared software environments and stable discipline leads. Contracts are described as needing to support this ambition by requiring editable models and calculation files from the Serbian firm along with record preservation and audit acceptance prior to further subcontracting . Intellectual-property rights are expected to allow asset owners to operate and modify installations over their life cycle.

Documented cybersecurity controls for grid data

Cybersecurity controls are described as applying specifically to substation layouts, protection settings, network models and control-system architecture rather than treating them as ordinary design data . Access should be classified, limited and logged so that file transfer capability abroad does not equate to permission for cross-border sending under project rules.

The infrastructure challenge across Europe is cited as increasing interest in distributed engineering arrangements while maintaining boundaries between nearshoring approaches that keep accountability clear and outsourcing approaches that could weaken control over responsibility . The organisations described as succeeding are those creating one design basis, one controlled configuration and one visible chain of engineering authority across both countries rather than those focused primarily on transferring drawings abroad.

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