A new report by the Institute for Sustainable Futures (ISF) at the University of Technology Sydney, in collaboration with the Australian Energy Market Operator (AEMO), reveals that Australia’s electricity sector is set for significant job growth, but faces potential skills shortages that could hinder the transition to a clean energy future. The study, facilitated by the RACE for 2030 Cooperative Research Centre, predicts that electricity sector jobs will double by 2029, with an increase of 33,000 jobs in the most likely scenario outlined in the 2024 Integrated System Plan (ISP).
The majority of new jobs will be in renewable energy, particularly in wind, solar, and battery storage. The report emphasizes the growing importance of operations and maintenance roles, expected to comprise 65% of the electricity sector workforce by 2033.
However, the rapid expansion of the renewable energy sector will exert significant pressure on the labor market. Key challenges identified include:
Skills shortages: A rising demand for skilled workers, including electricians, mechanical trades, and engineers, could lead to project delays, as the sector currently invests little in skills development and training.
Boom-bust cycles: The construction-heavy nature of renewable energy projects risks creating a highly variable workforce, complicating training and retention efforts.
Regional challenges: Many renewable energy projects are situated in remote areas, competing for labor with urban infrastructure projects.
Jay Rutovitz, Chief Investigator for the project, stated, "The transition to a clean energy future presents a huge opportunity for Australia, both in terms of job creation and economic growth. We need to act now to address the potential skills shortages to ensure we can deliver this transition and realize the benefits."
The report offers several recommendations, including smoothing the development pipeline for renewable energy projects, extending the Australian Skills Guarantee to cover all energy infrastructure involving public finance, and attracting a more diverse workforce.
Genevieve Simpson, Program Leader at RACE for 2030, highlighted the urgent need for collaboration between industry, government, and training providers to develop a skilled workforce capable of delivering the ISP and achieving a clean energy future for Australia.
Furthermore, the report indicates that the workforce required for energy efficiency and electrification transitions is likely to be significantly larger than identified, potentially contributing hundreds of thousands of additional jobs by 2030.
The report calls for immediate action from the federal government, AEMO, and other stakeholders to address the skills gap and unlock opportunities for emissions reduction. By investing in training, streamlining development processes, and promoting diversity in the energy sector, Australia can build a skilled workforce to power its clean energy future.
The full report and individual state reports are available at: RACE for 2030.