How are geopolitical shifts impacting the energy transition? Nathalie Oosterlinck, CEO of JERA Nex, shares how businesses and governments can navigate the energy trilemma – sustainability, affordability, and security – in a multipolar world.
Interviewed by Klara Marie Schroeder
As a global company, global alliances are crucial to our investments and overall strategy.
We were launched by Japan’s largest power company, JERA, and are headquartered in London. We have renewable energy projects and investments around the world, including in the US, Germany, Belgium, Taiwan, Japan, the UK, the Philippines, Vietnam, and Norway.
To build projects at the scale we do, we rely on alliances across development, investment, and the supply chain. We have many different consortiums and partnerships worldwide, which have proven to be a successful model.
Collaboration is critical to driving the renewables industry forward, as nearly all projects involve partnerships. Accelerating supply chain development, new technologies, and even business consolidation are also key factors. But the benefits extend beyond individual businesses. In APAC, for example, the growth of cross-border regional power trading is supporting the development of renewable energy projects.
In terms of how global alliances are changing in today’s multipolar world, the direct impacts are sometimes difficult to define.
On one hand, we are seeing more polarized debates around renewables and increasing volumes of mis- and disinformation. We are also seeing rising tariffs and trade restrictions globally. This has driven the development of manufacturing in regions like Indonesia, Malaysia, and Singapore, where industries are now focusing on exports to support renewable projects.
On the other hand, global trade and supply chains remain more important than ever. At JERA Nex, our focus continues to be on pursuing global alliances to scale renewables, as shown in our recent JERA Nex-bp announcement.
Ultimately, multipolarity and geopolitical disruptions are challenges we must prepare for. Many of the discussions at last year’s Berlin Global Dialogue centered around the crucial role of alliances in spreading risk, mitigating challenges, and ensuring that projects can be delivered successfully.
Working in Japan really changed my perspective. I am originally from Belgium and have always operated in a European context, but I learned the importance of not viewing everything through a European lens - especially the energy transition. The transition in Asia is very different from Europe, with unique pressures and circumstances in each market. There is no one-size-fits-all approach.
The energy trilemma - sustainability, affordability, and security - exists everywhere, but while the challenges are similar, the solutions vary. Around the world, we see some truly innovative developments. Our focus is on high-quality, integrated projects that create synergies between renewable energy technologies and JERA’s traditional energy assets.
JERA has always been a long-term investor. We have carried this heritage into JERA Nex, emphasizing discipline in bidding and project selection. Saying no is often more important than saying yes, even though it is not always the easier choice. The energy market is measured in decades rather than years, which makes investment challenging when stakeholders expect faster returns.
Regional and local contexts matter significantly - every country is different in terms of geography, regulations, community dynamics, government policies, and grid infrastructure. Each region is like a complex jigsaw puzzle, requiring a tailored approach to fit its unique circumstances.
Great question. Emerging economies present a huge opportunity for renewables, but also significant challenges. As I mentioned earlier, we need to be careful not to view the energy transition through a single, developed-market perspective.
Take India, for example. While there is a strong push for renewable energy, a significant percentage of the population still lacks access to electricity. Balancing the energy trilemma in a country like that is complex.
The biggest challenge is investment, which remains insufficient. To meet global targets and rising energy demand while staying aligned with the Paris Agreement, annual investment needs to triple from $770 billion to $2.28 trillion by 2030. But affordability is a key friction point. Governments face competing priorities - immediate social needs, long-term innovation, high capital costs, and domestic market conditions. Many emerging economies urgently need renewables, yet the broader energy ecosystem, including interconnection and battery storage, is still developing.
Another major challenge is supply chains. In less developed markets, local manufacturing and infrastructure are often lacking. For example, when we developed an offshore wind project in Taiwan, local production requirements posed a significant hurdle. Building up these capabilities takes time, creating a chicken-and-egg situation. More investment could help, but many investors remain hesitant due to these persistent challenges.
Switching to renewables is not straightforward, but as energy demand and economies grow, there’s a chance to build sustainable infrastructure from the ground up, leapfrogging some of the barriers faced by developed markets.
Recent geopolitical disruptions have shown energy security is more important than ever. Developing renewables is a clear way for governments and businesses to address this challenge, reducing emissions while mitigating risks like volatile gas prices. But achieving balance is difficult.
Affordability remains a challenge. Wind and solar have zero marginal costs, pushing down average energy prices, but geopolitical pressures create volatility. We see periods of very low or even negative prices, followed by sharp increases. This intermittency requires infrastructure investments to stabilize the energy system.
Major infrastructure projects are political choices. Offshore wind, for example, is a cornerstone of Europe’s energy mix, offering clean, independent energy. However, differing geographies mean solutions must be tailored to each country’s needs. Businesses with global experience understand that markets evolve - Europe and the US look very different today than five years ago.
Japan, where I recently lived, has limited land for renewables. The government is addressing this with subsidies for innovations like perovskite solar film, which can be installed on buildings, enabling large-scale solar adoption despite land constraints. Targeted support like this can accelerate project development.
Regulatory bottlenecks are another key hurdle for renewables. While reducing red tape is a global concern, permitting inefficiencies delay projects, affecting returns and discouraging investment. In the UK, for example, grid infrastructure is not expanding fast enough to accommodate new renewable projects. This infrastructure puzzle must be solved to enable a smooth transition.
Government support remains critical. Subsidies, though sometimes controversial, can effectively scale industries and drive economic returns. The US Inflation Reduction Act (IRA) is a prime example - $17 billion in tax credits spurred significant private investment in renewables.
Having spent over 20 years in the energy and infrastructure sector, I have seen firsthand how everything is cyclical - what goes up must come down. Global events always influence our industry. And so, while the current situation is very challenging, and maybe unique, change is a constant, and the industry has always evolved to meet the challenge and will continue to do.
As an industry, staying innovative and grounded is crucial. Our responsibility remains the same - building sustainable, disciplined projects that deliver value to both investors and society. Geopolitical shifts do not change that; they just make it more challenging.
Frequent political transitions worldwide inevitably affect the sector, but this is nothing new. As an industry, we are accustomed to navigating these shifts – they are simply part of the landscape. We adapt and get on with it.
Nathalie Oosterlinck is the CEO of JERA Nex, a renewable energy developer launched by JERA, Japan’s largest power generation company. Headquartered in London, JERA Nex has a portfolio of renewable assets including offshore wind, onshore wind and solar, as well as battery storage. Nathalie has over 20 years of experience in the energy and infrastructure sector. She takes an active role in advocating for diversity, equity and inclusion and mentorship of young professionals.
