Investment in skills is key to realising the clean energy transition

As the demand for renewable energy jobs grows, so do the skills shortage. This article looks at renewable energy job growth and the battle for offshore talent. It also examines reskilling to support renewable energy jobs. But what are the best methods for creating the right kind of jobs? And how can we prepare students to join the renewable energy workforce? This fact sheet answers these questions and more. We hope you find this useful and informative.

Renewable energy skills shortage

Companies that work in this sector face a shortage of skilled workers due to the growing demand for renewable and clean energy. Companies in renewable energy are looking for skilled workers. However, there is a global skills gap that is hindering their growth. A broad-based coalition has launched a campaign to address the skills gap. This coalition comprises companies, trade associations, government institutions and researchers. Together, they aim to fill millions of renewable energy jobs and accelerate progress towards Sustainable Development Goal 7.

In the United States, there are about 230,000 skilled workers employed in the renewable energy sector, but by 2035, 900,000 will be needed. With such a massive skills shortage, it will be increasingly difficult to place people in these jobs. This industry is a global problem and countries are increasingly looking beyond their borders for the right people. But in developing countries like India, where 300 million people live without electricity, there is a critical need for skilled workers in renewable energy.

There are several reasons for the skills shortage. First, the lack of skilled workers in key sectors is hindering the completion of projects. The demand for skilled workers is far greater than the supply, which increases worker costs. For example, a crane operator shortage can halt the progress of a wind farm, leading to missed delivery dates and contractual penalties. These skills are essential to ensure projects move as planned.

The biggest factor in the skills shortage in renewable energy is insufficient education. Recruiters in this sector cite aging workforce as the biggest challenge, but many also point to insufficient education as a reason for the shortage. The renewable energy sector is growing faster that the available education and training programs. This creates a global skills gap. Businesses will find it more difficult to compete with their competition due to a shortage of skilled workers.

The battle for offshore talent

Europe is a hotbed for offshore renewable energy talent, but the United States has a shortage of skilled workers. The country has almost half the global supply of wind energy, and the labor movement in New York is drawing on Danish expertise. During Hurricane Sandy, Cornell University helped workers in Denmark and Danish companies rebuild, and more trips to Denmark could be part of union member training in the future. How can American unions compete against European talent?

It takes years to build offshore wind expertise. Companies invest in the training and development of their workforce. These employees are able to learn from their experience and make mistakes. Auctions do not allow for costly mistakes due to a lack of experience. Companies are always looking for the best candidates to fill job openings. However, hiring less experienced workers could undermine the commercial models of offshore wind farms. Therefore, industry and government should work together to foster talent in the offshore wind industry.

Offshore wind companies have discovered that workers in the oil-and-gas industry are similar to those in low carbon industries. It is possible to transfer skills from the traditional industry. According to research from management consulting firm EY, seven out of ten oil and gas jobs have partial overlap with jobs in low-carbon industries. The question is: How can the offshore renewable energy sector recruit the right talent?

The Biden administration plans to expand the offshore wind industry in the U.S. and has set ambitious goals of 30 GW of offshore wind energy production by 2030. This would reduce carbon dioxide emissions by 78 million tonnes each year and provide power for ten million homes. In Denmark, the parliament approved a climate agreement in 2020, calling for the construction of an artificial energy island the size of 64 football pitches in the North Sea. This initiative is growing in popularity as energy costs continue to rise.

Boosting the skills agenda

To create more jobs in renewable energy, it is important to increase the number of skilled people with a strong understanding of renewable energy. Government programs and market investment are essential in encouraging renewable energy growth and support for clean energy job creation. Boosting skills is also important for local governments and training centres, especially in rural areas. Local governments can partner with private sector companies and training centers to help residents acquire the skills they need to create jobs in renewable energy.

The skills gap is particularly pronounced in the growing markets for renewable energy. In Africa, for example, the share of people with access to electricity doubled between 2009 and 2016. This is an important indicator of the need for job-ready talent, particularly in Africa and Asia. Many countries are struggling to attract talent and achieve their sustainability goals. In the meantime, growing demand for home solar systems and off-grid renewable energy solutions in the region means a severe skills shortage.

Soft skills are a key area for developing skills in the renewable energy sector. These are crucial competences, which are necessary for any job environment, including “green” ones. These include communication and intercultural skills. The European Commission has highlighted the importance of developing these skills, and recent studies have also demonstrated the need for them. Soft skills are an essential component of a sustainable economy, according to the European Commission.

A video produced by Cedefop on boosting skills for renewable energy jobs in Europe was also recently published by the ILO. The video aims to illustrate the benefits of boosting skills in this sector for both individuals and employers. This synthesis report provides an analysis of the skills needed for jobs in this area, highlighting the importance of understanding the environmental impact of an occupation. It can be downloaded in its entirety as a PDF file.

Retraining for job growth in renewable energy

Although reskilling is a common theme within this industry, it has a far greater impact on the existing sector than the impact on the new. There are not many reskilling opportunities for oil and coal workers at the moment, and C-VET courses in the EU are only marginally relevant. Randstad Research reports that the EU27 will see a rise in demand for RES jobs, with nearly half of these new jobs based on solar PV and wind energy. This means that new jobs in renewable energy could replace up to 90% of the current coal-related job growth. Additionally, some regions in DE are expected to have the highest induced offshore wind employment, while others will have the highest rooftop solar demand.

Corporate power purchase activity continues to grow, with companies announcing 1GW in clean energy deals in March. This is an increase from 2.1GW at the same time last year. As demand increases, so will the need for cleaner and more environmentally friendly energy products. These new sectors will continue to grow and it is crucial that we reskill for the growth of renewable energy jobs in order to ensure a sustainable future. However, some fields require higher entry skills than others, such as wind turbine technicians and solar PV installers.

Due to an increase in green jobs and a corresponding rise in renewable generation, the global renewable energy industry faces immense pressure. Fossil fuel companies must prepare for the transition by reskilling their employees and hiring talent from greener businesses. In addition, the transition is expected to create 1.7 million new green jobs in the UK if the government adopts the Climate Change Committee’s Sixth Carbon Budget. We can create a sustainable future in our economy by reskilling to be able to do renewable energy jobs. This will provide many opportunities for our workers.

Reshaping higher education

As a result of climate change, our planet is facing a new set of challenges, including developing a new ethic of sustainability and re-orienting our higher education. The Industrial Revolution was the last major shift in education and society. Dualistic reasoning was the foundation of science in the past. It separated culture from nature and encouraged the development specialist fields. Universities based their teaching on these dualistic perspectives, which are no longer relevant in the Anthropocene, where nature and human culture are interdependent and complex.

Institutions with on-campus wind turbines and solar panels can be seen as innovative and forward-thinking in the postsecondary market. By displaying cutting-edge machinery and embracing trends, they can demonstrate that they care about the environment and strive to meet the needs of future workers. More higher education institutions are now reshaping their renewable energy portfolios to meet the growing demand. This shift to greener, more sustainable products will increase demand for greener products, particularly for jobs in renewable energy.

Some universities have created new degree programs to prepare students for careers in energy-related fields to fill the gap. Durham University, for example, is creating a Master of Energy Systems Management course that will start in September 2021. Expanding the pool of potential workers would also help meet the skills shortage. These jobs are dominated by white men, but if there is an increase in the number of people with diverse backgrounds, the skills shortage can be addressed.

Universities should not only address workforce needs but also develop holistic curricula and teacher training. Universities should partner with businesses to update curricula, mentor students, and create technological innovations through research. This would attract diverse students to jobs in renewable energy. This type of collaboration would also foster a deeper understanding of the nexus between energy and climate issues. This collaboration would be beneficial to all parties involved in the transition to energy.