Rapid workforce growth is needed to achieve Australia’s clean energy targets, according to a new report from the Institute for Sustainable Futures, University of Technology Sydney (ISF), in partnership with the Australian Energy Market Operator (AEMO).
The Australian Electricity Workforce for the 2024 Integrated System Plan: Projections to 2050 report reveals that under AEMO’s 2024 Integrated System Plan (ISP) Step Change scenario, considered the most likely by AEMO’s expert panel, the clean energy workforce needs to almost triple in the next five years.
An increase from 21,500 to 59,300 workers is needed to build and operate the generation, storage and transmission infrastructure required to achieve 82 per cent electricity in the National Electricity Market by 2030.
Construction jobs dominate the workforce profile in the short term to build new large-scale renewable generation, storage and transmission infrastructure. By 2033, most jobs shift to ongoing operations and maintenance, which endure throughout the 25-year operating life of these assets. Beyond large-scale renewables, the workforce needed to sustain Australia’s world-leading uptake of rooftop solar and distributed batteries will continue to grow steadily to mid-century.
The energy transition is facing headwinds from skills shortages including electricians, mechanical trades and electrical engineers. Boom-bust construction cycles create significant risks for labour supply, as does competition for labour between regional areas hosting renewable energy projects and infrastructure projects in major capital cities.
The report notes that the workforce required for energy efficiency, electrification, demand and energy management is excluded from the modelling. This workforce is set to increase exponentially over the coming decades, with significant overlap with critical energy occupations already in shortage.
Clean Energy Council Senior Policy Officer – Workforce Development, Julian McCoy, said that the launch of today’s report underscores the urgent need for comprehensive reform to secure the workforce needed to support the energy transition.
This report demonstrates the scale of challenges and opportunities the clean energy industry is facing. Done right, we can improve diversity and create lasting jobs in regional communities. This requires a deeper understanding of the impacts of the transition on new and transitioning energy communities and co-designed, place-based transition planning that secures a just transition for all involved.Julian McCoy Clean Energy Council Senior Policy Officer - Workforce Development
“We also need to undertake holistic planning that considers the workforce needs of the transition across the economy. There are enduring data gaps that require urgent attention and we simply don’t have the time to waste.”
The Clean Energy Council’s commitment to investing in the workforce needed to reach Australia’s renewable energy and emissions reduction commitments is a fundamental component of its advocacy agenda.
This commitment is also exemplified by the Clean Energy Council’s leadership of initiatives and programs aimed at improving diversity and inclusion in the clean energy workforce, with an emphasis on empowering and increasing opportunities for women, First Nations people and other underrepresented groups already working in the sector.
Key findings from the report:
- Skills shortages: the demand for a range of skilled workers, including electricians, mechanical trades and engineers will increase significantly, potentially causing project delays and compromising the ISP’s optimal development path. The renewable energy industry is currently experiencing skill shortages in many critical occupations.
- Boom-bust cycles: excluding workforce consideration from system modelling produces compresses build schedules to the end of the decade. This creates significant supply chain and workforce risks due to competing demands for infrastructure build across the economy.
- Regional challenges: Most renewable energy jobs are located in regional areas, which will be competing for labour with infrastructure projects in major capital cities.
Policy recommendations from the report:
- The Federal and State governments should consider mechanisms to smooth the development pipeline of renewable energy projects.
- The Australian Skills Guarantee for 1-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.
- Research bodies in partnership with industry need to develop data and methods that include the demand-side workforce in future projections.
ENDS
For more information or to arrange an interview, contact:
Liam Straughan
Clean Energy Council Media Officer
+61 409 470 683