Renewable energy transition under threat from critical skills shortage

The forecasted expansion of the renewable energy sector could be a dumpster fire, as a new report has highlighted the significant strain it could have on the labour market.

A new report undertaken by the ISF (Institute for Sustainable Futures) has shown that Australia’s energy sector is ready to be impacted by exceptional job growth, yet may lack the means to keep up. Potential skills shortages could threaten to derail the transition to a clean energy future.

According to the report, 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).

These new jobs will be in renewable energy, with solar, wind, and battery storage, at the top of the pile. It also stressed the importance of operations and maintenance roles expected to account for 65 per cent of the electricity sector workforce by 2033.

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 for the project.

Despite this opportunity, the findings highlight the immense strain that the renewable energy sector could have on the labour market:

• The demand for a range of skilled workers, including electricians, mechanical trades, and engineers will increase significantly, potentially causing project delays. The renewable energy sector invests very little in skills development and training, as noted by Jobs and Skills Australia in a recent report.
• Boom-bust cycles caused by 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, competing for labour with infrastructure projects in big cities.

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

Several recommendations were offered throughout the report, which included ideas like smoothing the development pipeline through government policies, Australian Skills Guarantee for one in 10 workers on publicly funded projects to be apprentices or trainees, and attracting more diverse workers.

"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."