Urgent Demand for Skilled Workers in Energy Transition

A report from the Institute for Sustainable Futures (ISF) at the University of Technology Sydney (UTS) warns of a looming skills shortage that could derail Australia’s clean energy transformation. The study, conducted in partnership with the Australian Energy Market Operator (AEMO) and the RACE for 2030 Cooperative Research Centre, emphasizes the urgent need for skilled workers to meet the growing demands of the renewable energy sector.

According to the report, jobs in the electricity sector are expected to double by 2029, with a projected increase of 33,000 jobs in just five years. Wind, solar, and battery storage will drive much of this growth, with operations and maintenance roles making up 65% of the electricity sector workforce by 2033.

One of the most significant challenges identified in the report is the potential for severe skills shortages. Trades like electricians, mechanical engineers, and technicians are in high demand, and the lack of investment in skills development could lead to delays in critical renewable energy projects. Jobs and Skills Australia has pointed out that the sector currently invests little in training, exacerbating the issue.

The report also highlights the risk of boom-bust cycles, caused by the construction-heavy nature of renewable energy projects. The workforce needed for construction fluctuates, leading to instability in job opportunities and making it difficult to build and retain a skilled workforce. This unpredictability could hinder the industry's ability to meet long-term goals.

Many renewable energy projects are located in remote areas, which will compete with urban infrastructure projects for labor. This geographic divide could make it even harder to attract and retain skilled workers for renewable energy projects in regional locations.

The report offers several recommendations to address these workforce challenges, including smoothing the development pipeline of renewable energy projects and extending the Australian Skills Guarantee. It suggests that one-in-ten workers on publicly funded projects should be apprentices or trainees, which could help stabilize the labor market and develop long-term skills.

Another key recommendation is to attract a more diverse workforce, particularly by encouraging more women and First Nations people to enter the renewable energy sector. Expanding workforce diversity could provide a more sustainable labor supply while helping the industry meet its growing needs.

RACE for 2030 Program Leader, Genevieve Simpson, emphasizes the importance of collaboration between industry, government, and training providers. “We need a proactive approach to ensure we have the workforce necessary to deliver the Integrated System Plan and achieve a clean energy future for Australia,” she said. Simpson also noted that the workforce required for "behind-the-meter" transitions like energy efficiency could contribute hundreds of thousands of additional jobs by 2030.

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