Australia's energy transition urgently needs skilled workers

Research from the Institute for Sustainable Futures (ISF) in collaboration with the Australian Energy Market Operator (AEMO) has shown that the nation might soon face a worrying lack of the type of electrical skills needed to manage Australia’s energy transition.

The study was facilitated by the RACE for 2030 Cooperative Research Centre (RACE for 2030).

Electricity sector jobs are forecast to double by 2029 — an increase of 33,000 in just five years in the most likely scenario of the 2024 Integrated System Plan (ISP).

The majority of these new jobs will be in renewable energy, with wind, solar and battery storage dominating. According to the report, operations and maintenance roles will be increasingly important; they are expected to account for 65% of the electricity sector workforce by 2033.

The rapid expansion of the renewable energy sector will place a significant strain on the labour market.

Key challenges identified in the report include:

• Skills shortages: The demand for a range of skilled workers, including electricians, mechanical trades and engineers, will increase substantially, potentially causing project delays. The renewable energy sector currently invests very little in skills development and training, as noted by Jobs and Skills Australia in a recent report.
• Boom-bust cycles: The construction-heavy nature of renewable energy projects will see a highly variable workforce with a risk of boom-bust cycles. This reduces national, regional and local opportunities as it becomes much harder to train and retain a stable workforce.
• Regional challenges: Many renewable energy projects are located in remote areas, which will be competing for labour with infrastructure projects in big cities.
   

“The transition to a clean energy future presents a huge opportunity for Australia, both in terms of job creation and economic growth,” said Jay Rutovitz, chief investigator on the project.

“We need to act now to address the potential skills shortages to make sure we can deliver this transition and realise the benefits.”

To manage these challenges, the report recommends streamlining the development pipeline, with federal and state governments implementing policies for smoother development of renewable energy projects over time. It also advises that the Australian Skills Guarantee (for one in 10 workers on publicly funded projects to be apprentices or trainees) should be extended to cover all energy infrastructure involving public finance or procurement.

Further, the report states that the energy sector needs to attract a more diverse workforce, including more women and First Nations people.

“The findings highlight the critical need for a proactive approach to workforce development in the renewable energy sector,” said Genevieve Simpson, Program Leader at RACE for 2030.

“The report underscores the urgent need for collaboration between industry, government and training providers to ensure we have the skilled workforce required to deliver the ISP and achieve a clean energy future for Australia.”

The workforce needed to deliver the energy transition is even larger than identified in the report, with roles required for so-called ‘behind the meter’ transitions like energy efficiency and electrification, which could potentially contribute hundreds of thousands of additional jobs by 2030. Understanding more about this workforce is crucial, considering its overlap with occupations already identified as in short supply, such as electricians and engineers.

To read the full report as well as individual state reports, visit https://racefor2030.com.au/project/australian-electricity-workforce-for-the-2024-integrated-system-plan.

Image credit: iStock.com/Thurtell