At the “Pentalateral Energy Forum” held recently (including Germany, France, Austria, Switzerland, and the Benelux), France and

Germany, Europe’s two largest power producers, as well as Austria, Belgium, the Netherlands, and Luxembourg reached an

agreement with seven European countries, including Switzerland, committing to decarbonize their power systems by 2035. The

Pentagon Energy Forum was established in 2005 to integrate the electricity markets of the seven European countries mentioned above.

The seven-nation joint statement pointed out that timely decarbonization of the power system is a prerequisite for comprehensive

decarbonization by 2050, based on careful research and demonstration and taking into account the International Energy Agency (IEA)

net-zero emissions roadmap. Therefore, the seven countries support the common goal of decarbonizing the common power system

by 2035, helping the European power sector achieve decarbonization by 2040, and continue on the ambitious path of completing

all-round decarbonization by 2050.

The seven countries also agreed on seven principles to achieve the set goals:

- Prioritizing energy efficiency and energy conservation: Where possible, the principle of “energy efficiency first” and promoting energy

conservation are critical to mitigate the expected growth in electricity demand. In many cases, direct electrification is a no-regrets option,

delivering immediate benefits to communities and increasing the sustainability and efficiency of energy use.

— Renewable energy: Accelerating the deployment of renewable energy, especially solar and wind, is a key element of the collective

effort to achieve a net-zero energy system, while fully respecting the sovereignty of each country to determine its energy mix.

- Coordinated energy system planning: A coordinated approach to energy system planning across the seven countries can help achieve

timely and cost-effective system transformation while minimizing the risk of stranded assets.

- Flexibility is a prerequisite: In moving towards decarbonisation, the need for flexibility, including on the demand side, is critical to the

stability of the power system and security of supply. Therefore, flexibility must be significantly improved on all time scales. The seven

countries agreed to work together to ensure sufficient flexibility in power systems across the region and committed to cooperating to

develop energy storage potential.

— The role of (renewable) molecules: Confirming that molecules such as hydrogen will continue to play a key role in hard-to-decarbonize

industries, and their fundamental role in stabilizing decarbonized power systems. The seven countries are committed to establishing and

increasing the availability of hydrogen to drive a net-zero economy.

- Infrastructure development: Grid infrastructure will undergo significant changes, characterized by a significant increase in grid capacity,

strengthening the grid at all levels including distribution, transmission and cross-border, and more efficient use of existing grids. Grid

stability is becoming increasingly important. Therefore, it is crucial to develop a roadmap to achieve the safe and robust operation of a

decarbonized power system.

- Future-proof market design: This design should incentivize necessary investments in renewable energy generation, flexibility, storage

and transmission infrastructure and allow efficient dispatch to achieve a sustainable and resilient energy future .