Statement by Ministers of the Pentalateral
Energy Forumon a joint vision for a decarbonized electricity system

We, the ministers of the Pentalateral Energy Forum1, aim to drive thedevelopment of a sustainable energy future for the Penta region. We
fully commit to a fair contribution to achieve the objectives of theParis Agreement and to reaching climate neutrality by 2050 at thelatest. The path to this goal will benefit from coordinated efforts
within the Pentalateral Energy Forum where we bridge our national
plans and global aspirations through regional cooperation, notably
through our joint NECP2 chapter.
As a part of this regional cooperation, the Pentalateral Energy Forumhas performed multiple studies to investigate possible futures of ourenergy system. Based on these studies, as well as from the IEA net
zero roadmap, we conclude that timely decarbonization of theelectricity system is a prerequisite to allow for full decarbonizationof our societies by 2050, and that collective action in our region
allows to address this challenge in a more efficient and effective
manner.

We therefore express our collective aim to strive for thedecarbonization of our interconnected electricity system by theyear 2035, and to continue on an ambitious path to fulldecarbonization of our societies by 2050.

To transition to a decarbonized electricity system in the Penta region,
we agree on the following guiding principles:

Coordinated Energy System Planning: We emphasize the need fora coordinated approach to energy system planning in the Pentaregion. This will be instrumental in achieving a timely and costefficient system transformation while minimizing the risk of stranded
assets. Reaping benefits from a coordinated planning of offshore andonshore grids for hydrogen and electricity infrastructures which also
includes imports is of crucial importance.

Flexibility as a Prerequisite: We recognize that in moving towards
decarbonization the need for flexibility, including demand side
flexibility, is crucial for power system stability as well as for securityof supply. Flexibility will thus have to increase significantly across alltime scales. We agree to work jointly to ensure sufficient flexibility inthe electricity system across the region, amongst others throughensuring new power demand is flexible, and by leveraging business
opportunities both on the supply and demand side. Furthermore, wewill aim to cooperate in exploiting our various storage potentials.

Role of (Renewable) Molecules: We acknowledge the pivotal rolethat molecules such as hydrogen will continue to play in hard-toabate sectors, as well as their fundamental role in stabilizing adecarbonized electricity system. We are committed to establishing
and advancing the availability of hydrogen for advancing towards a
net-zero economy.

Energy Efficiency First and Energy Savings: Where possible the"energy efficiency first" principle and the promotion of energysavings are essential in mitigating the expected increase in power
demand. In many situations, direct electrification is a no-regret
option that offers immediate benefits to our communities,
enhancing both the sustainability and efficiency of energy usage.

Infrastructure Development: We anticipate significant evolution
in our grid infrastructure, characterized by substantial increases in
power grid capacities, grid reinforcement at all levels—distribution,transmission, and cross-border- and a more efficient use of existing
power networks. Grid stability is becoming increasingly important. Itis therefore essential to develop a roadmap to achieve safe androbust system operation with decarbonized electricity.

Renewable Energy: We acknowledge that renewables, particularly
solar and wind energy, are a crucial element of our collective efforts
towards net-zero energy systems. We recognize the need foraccelerated deployment of these sustainable energy sources to meet
our decarbonization objectives, whilst fully respecting thesovereignty of each Penta country to decide on its own energy mix.

Future-Proof Market Design: We recognize the necessity of afuture-proof market design. This design should incentivize necessary
investments in renewable generation, flexibility, storage andtransmission infrastructure and allow for efficient dispatch, andensure resource and transmission adequacy for a sustainable andresilient energy future.

18 December 2023, Brussels

1 The Pentalateral Energy Forum is the framework for regional energy cooperation between Austria,

2 National Energy and Climate Plans (NECPs) as introduced by the Regulation on the Governance of theBelgium, France, Germany, Luxembourg, the Netherlands and Switzerland.

Energy Union and Climate Action (EU)2018/1999.