Energy security and the new geography of power

To read the full white paper, “Energy Security and the New Geography of Power: Security, Infrastructure, and the Reallocation of Global Capital”, click here or click “Download Publication”.

Executive Summary

The global energy system is undergoing a structural reallocation of capital, driven by a shift in how governments, corporations, and investors understand the cost of energy dependence.

Electricity demand is rising at a rate not seen in decades, propelled by artificial intelligence, industrial electrification, and population growth. At the same time, a series of geopolitical disruptions have exposed how fragile the fossil fuel supply chain can be when tested. These are not cyclical pressures. Together, they are reshaping how energy systems are built and where capital is deployed.

The response is already visible across every major region. Governments are accelerating investment in domestic generation, grid infrastructure, and supply chain resilience. Capital has followed. Global energy investment reached approximately $3.3 trillion in 2025, with roughly two-thirds now directed toward clean energy.1 Across geographies and fuel types, the common objective is consistent: reduce exposure to external dependencies and the risks they create.

What we call the New Geography of Power is the result—a sustained shift in global energy investment toward systems that are more domestic, more resilient, and less exposed to disruption. This shift is being driven as much by economics and security as by decarbonization, and it is unfolding across both developed and emerging markets, albeit in different forms.

Five observations define this transition and provide a roadmap for where it is creating investable opportunity:

1. THE ENERGY SYSTEM IS UNDER STRUCTURAL PRESSURE FROM BOTH DEMAND AND SUPPLY.

Successive geopolitical disruptions have exposed systemic vulnerabilities in fossil fuel supply chains, while global electricity demand is growing at the fastest sustained pace in decades, driven by artificial intelligence, industrial electrification, and population growth across both developed and emerging markets. These pressures are converging. Rising demand and constrained supply are forcing a fundamental reconfiguration of how energy is produced, delivered, and secured.

2. THE RISKS OF ENERGY DEPENDENCE ARE NOW FULLY UNDERSTOOD.

Successive shocks have exposed physical, political and economic vulnerabilities in the global energy system. Governments and corporations are responding through a revised approach that recognizes the costs of energy dependence.

3. THE TRANSITION WAS ALREADY UNDERWAY—AND IS ACCELERATING.

Renewables and storage have reached cost parity or better in most markets, with faster deployment timelines and fewer supply constraints. Recent shocks have accelerated a transition that was already economically inevitable.

4. THE OPPORTUNITY IS GLOBAL BUT NOT UNIFORM.

In developed markets, the priority is modernising and hardening existing infrastructure. In emerging markets, the opportunity is the large-scale buildout of new energy platforms where demand growth and infrastructure deficits are greatest.

5. THIS IS A STRUCTURAL SHIFT.

Capital is responding to a strategic imperative of reducing dependence and improving resilience, rather than commodity price signals alone. That imperative is structural across policy environments and market cycles.

This reallocation is reshaping both the supply and demand sides of the energy system. It is creating large, differentiated investment opportunities across infrastructure, generation, and the technology layer that enables energy to be produced, managed, and consumed more efficiently.

These opportunities are not uniform. They vary by market, resource availability, infrastructure starting point, and by the nature of demand growth. Yet they are being driven by a common underlying force: the need to reduce the cost and risk of energy dependence.