THE STATE OF THE EUROPEAN UNION. Reforming Europe in a time of war

Europe’s moment of truth on its way to the moon 39 electricity from sun and wind, interventions in grid oper- ation will multiply. Overall, the technical challenges for the security of system operation will increase.The institu- tional, regulatory, and market framework for joint system operation will have to be further adapted. Digitisation is also becoming more important in order to reliably and efficiently control the electricity grid and electricity trad- ing. But digitisation also adds to vulnerability. Europe’s concentric circles Europe faces an enormous challenge with regard to its cohesion. This also applies to the different rates at which the hydrogen economy is being expanded. Mem- ber States in southern Europe can now play up their locational advantages. Italy and the Iberian Peninsula are likely to become regional energy hubs and thus attain central importance for the European energy infrastruc- ture. Greece is also in an important geopolitical position, as the eastern Mediterranean will host key energy corri- dors from Egypt and the Gulf States to Europe. In the case of pure hydrogen, as with gas, geograph- ic proximity and the pipeline distance are determining factors. The construction of this hydrogen infrastructure can be thought of in concentric circles, similar to the development of the electricity grid, comprising the EU plus neighbouring countries and regions: Great Britain, Norway, the Baltic Sea region, the Mediterranean region, and Ukraine after reconstruction. With regard to deriva- tives and liquefied, compressed hydrogen, more distant countries such as Chile, Australia, South Africa and the Gulf States are also in a good position, because trans- port by ship is possible. Europe should focus primarily on those potential partners who play by the same rules, and accordingly give preference to democratic states where this is possible. In the renewable energy world, such ad- vantages can be exploited - in contrast to fossil energies. Europe depends on creating a level playing field for electricity and hydrogen together with other major mar- kets. It is therefore important to seek like-minded part- ners to move forward together in shaping those markets. The EU needs to prepare for a much more protectionist and fragmented world that will negatively impact value and supply chains.And at the same time, it has to master the challenge of not furthering this development, but of acting cooperatively. Getting the silent majority on board However, Europe must also become more cooperative and open internally – otherwise there is a risk of trouble. Populist attacks and growing social polarisation do not stop at the energy transition. On the contrary, climate policy threatens to become the next ideological battle- field. The decisive factor for the success of the energy transition is the silent majority.To win them over, it is not enough to merely shoulder the burden fairly. The ener- gy transition must also offer something to this majority and involve them. The barriers to the electricity market for small, local players and energy cooperatives must be eliminated; up to now, large capitalist players have been systematically given preference. In addition, there is a need for early, informal in- volvement of the local population which is easily acces- sible and transparent, rather than procedures in which one can only get involved once the die has long been cast. Rural regions must benefit more. And cities should also make their contribution so that rural areas do not shoulder the burden alone. Through cooperatives, locals become prosumers - consuming producers and producing consumers. They contribute to the development of their region, the profits remain where the electricity is gener- ated, and the energy transition is fuelled – if cooperatives didn’t already exist, they would have to be invented for the energy transition. Now it is necessary to remove the hurdles in their way – and prevent new ones from being created at European and national level. There is a need for extensive local contact points for interested, committed, and concerned people on site. There, they should find help with planning, for example,