Australia needs 2 million workers to meet its ‘clean energy’ future
Australia will likely need 32,000 more electricians in the next seven years and close to 2 million workers in building and engineering trades by 2050, according to a new study commissioned by the Australian government as it wrestles with its plans to meet the manpower demands of a new “clean energy” future.
The government has just released the final report of the study titled “The Clean Energy Generation: workforce needs for a net zero economy” which was produced by Jobs and Skills Australia.
The in-depth study confirmed that Australia can be a renewable energy superpower, but it will require a significant effort.
Clean energy export opportunity
The study also found that there is potential for Australia to expand its production of renewable energy beyond its current domestic requirement.
This would see Australia exporting renewable energy to the world, in the form of hydrogen, as well as extending further along the minerals value chain to process and refine more iron, aluminium, and critical minerals such as lithium here in Australia.
“Given proper planning, this transformational change could create generations of new employment opportunities for our regions,” the study found.
Substantial workforce transformation
The report acknowledged that reaching the Australian Government’s net-zero emissions target by 2050 will require a substantial workforce transformation and presents a major challenge.
“If we don’t fine tune our workforce pipelines, skill shortages could prevent us from reaching net zero by 2050, and opportunities to broaden our industrial base will be missed.”
The study said success would require cohesive, collective action across all levels of government and better collaboration with industry, unions and the education and training sectors.
Higher degree of job variability
According to the new report, unlike traditional energy employment, there can be a higher degree of variability and project-based work in clean energy.
“For example, large-scale solar farms are a project-based industry where businesses may lack certainty while waiting to win contracts, secure finance or gain approvals. Workforce needs are also typically front-ended (during construction phases), meaning there are fewer long-term employment opportunities.”
The study includes preliminary economic modelling of three possible future scenarios with the central scenario being broadly aligned with Government climate and energy policy.
40% lift in building and engineering workers needed
The preliminary modelling suggests that under the central scenario Australia will need to increase the number of workers in building and engineering trades by around 40%.
Occupations with the highest growth rates (2023-2030) include telecommunications trades workers, electronics trades workers, electrical engineering draftspersons and technicians, structural steel construction workers, construction managers, plumbers and electricians.
“Depending on different policy approaches to electrifying the National Energy Market (NEM) and reaching our renewable energy goals, the preliminary modelling shows we will need approximately 26,000 to 42,000 more electricians in the next seven years, and the clean energy supply workforce will likely need to grow from approximately 53,000 workers today to 84,000 by 2050.”
The study concluded that workforce change means more than just the number of jobs that will be created or lost.
For example, the transport sector will see major skills change as internal combustion engines are replaced with electric vehicles (and vehicles that use alternative fuels).
“Demand for specialist electric vehicle mechanics will increase, as will the demand for mechanics to work across both vehicle types.”
The report includes 50 recommendations aimed at ensuring Australia has the skills and workforce required to meet our clean energy ambitions.
Minerals Council says IR changes may topple future plans
Meanwhile, the Minerals Council of Australia (MCA) says new industrial relations changes are a major threat to a local net zero future.
According to the MCA, government plans to increase the jobs and skills Australia needs to mine and develop the critical minerals required to achieve net zero will be dealt a significant blow thanks to its industrial relations changes.
The jobs and skills report found that Australian mining will be a key driver of skills development in the coming decade, with the sector tipped to grow by 18%.
“But the government is undermining its own growth projections by proposing draconian and damaging workplace relations legislation that threatens to undo any gains achieved on employment,” said MCA chief executive officer, Tania Constable.
“To talk about creating the jobs of tomorrow’s critical minerals and clean energy future remains an exercise in futility when you have an industrial relations policy that threatens jobs and opportunity and will chase investment overseas.”