As Australia advances towards its ambitious 2030 renewable energy goals, the nation’s electricity workforce will need to double in size over the next five years. A new report, commissioned by the Australian Energy Market Operator (AEMO) and the RACE for 2030 co-operative research centre, reveals that more than 80% of the new jobs will be in renewable energy sectors, with employment in energy storage alone set to surpass domestic coal and gas jobs (excluding coal and gas exports) within a few years.
The findings reflect a critical shift in Australia’s energy landscape as the country transitions from fossil fuels to a cleaner, greener energy mix. But the journey will not be easy. It demands a significant expansion of skilled labor, large-scale infrastructure projects, and decisive action to address workforce shortages in key sectors.
Australia’s Energy Transition Blueprint
AEMO’s Integrated System Plan (ISP), updated every two years, serves as a comprehensive roadmap for transitioning Australia’s energy sector from coal to renewable energy. The ISP offers a range of scenarios that depict how the nation’s electricity grid might evolve to meet future demand, enhance energy security, and minimize environmental impact. These scenarios highlight the need to put in place all the necessary elements—policy, workforce, infrastructure, and technology—to make the transition a reality.
The most relevant scenario for Australia’s renewable energy target is the “step change” scenario, which aligns with the country’s goal of 82% renewable energy by 2030. According to the report’s modeling, under this scenario, the electricity workforce would need to grow from its current level of 33,000 jobs to a peak of 66,000 by 2029.
Renewable Energy Workforce
The report identifies that much of the job growth will occur in specific areas of renewable energy and related infrastructure:
- Rooftop Solar and Batteries: Rooftop solar installations and battery storage systems are expected to account for over 40% of the projected job growth. This reflects Australia’s status as a global leader in rooftop solar adoption, as more households and businesses opt for decentralized energy generation and storage.
- Wind Farms: Wind energy is expected to employ around one-third of the workforce, with large-scale wind farms playing a key role in generating clean power for Australia’s grid. The growth in wind farm construction will also support job creation in rural and regional areas, where these projects are often located.
- Solar Farms: Utility-scale solar farms are predicted to account for just under 10% of new jobs. While solar farms represent a smaller share of the workforce compared to rooftop solar, their large-scale installations are crucial for Australia’s renewable energy ambitions.
- Transmission Lines: Job opportunities in transmission line construction are set to triple, driven by the need to connect renewable energy projects in regional areas to urban centers and other states. Building a robust transmission network is essential for ensuring that renewable power can be reliably transported to areas of high demand.
In addition to these sectors, there is significant potential for job growth in emerging technologies, particularly in energy storage. Energy storage systems, including large-scale batteries, are essential for managing the intermittent nature of renewable energy sources like solar and wind. The report notes that jobs in energy storage alone will soon overtake those in domestic coal and gas.
Australia’s Renewable Energy Superpower Ambitions
Australia’s renewable energy workforce could grow even more substantially if the country embraces the “green energy export” scenario, which envisions Australia becoming a global leader in renewable energy exports. This scenario focuses on the export of green hydrogen and the use of renewable energy to power heavy industries, both domestically and abroad.
In this scenario, the electricity workforce would almost triple to 96,000 by the late 2020s, providing a substantial economic boost. By 2033, after the construction phase peaks, more than half of all electricity sector jobs would shift to operations and maintenance, ensuring the long-term stability of the workforce.
While this trajectory offers immense potential, it also comes with risks. A significant employment downturn is projected during the 2030s once the construction of renewable energy infrastructure slows. However, under the green energy export scenario, jobs are expected to rise again sharply towards a peak of 120,000, reflecting the anticipated growth in Australia’s renewable energy export market.
Regional Employment Dynamics
The distribution of renewable energy jobs across Australia will vary by state. New South Wales is expected to have the most renewable energy jobs throughout the 2020s, driven by its investment in large-scale solar and wind projects. However, by the time the green energy export scenario comes into full effect, Queensland could become the leading state for renewable energy employment, particularly in wind farms.
The geographic shift in job creation highlights the importance of supporting regional communities, where many of these projects will be located. Transmission lines connecting these renewable energy zones to urban centers will also play a crucial role in balancing regional development with national energy goals.
Enhanced Manufacturing and Progressive Change Scenarios
In addition to the step change and green energy export scenarios, the report also examines two other possible futures for Australia’s energy sector: progressive change and enhanced manufacturing.
- Progressive Change: This scenario envisions slower growth in renewable energy due to constraints on the economy, supply chains, labor, and mineral resources. It reflects a more cautious approach to the energy transition, with job growth in renewable energy occurring at a more gradual pace.
- Enhanced Manufacturing: The enhanced manufacturing scenario focuses on increasing Australia’s capacity to locally produce renewable energy technologies, such as solar panels, wind turbines, and battery storage systems. According to the modeling, this scenario could create an additional 5,000 jobs at its peak, providing a further boost to the renewable energy workforce.
Workforce Challenges and Solutions
While the potential for job creation in the renewable energy sector is enormous, the challenges of building the necessary workforce are equally daunting. Australia is facing a shortage of skilled workers in nearly all key occupations needed for the electricity sector, including electricians, engineers, and construction managers. These roles are listed on Australia’s Skills Priority List, which identifies occupations experiencing significant shortages.
Further complicating the situation is the forecasted “extraordinary growth” in other major infrastructure projects, such as transport, which will compete for many of the same skilled workers needed in the energy sector. Boom-bust cycles, driven by fluctuating employment demand, also pose a risk of exacerbating skill shortages, particularly in regional areas where housing shortages and other social impacts could be felt.
Addressing the Workforce Shortage
To address these workforce challenges, several actions have already been taken, but much more needs to be done to ensure that Australia can meet its 2030 renewable energy targets:
- Government Programs: The federal government has introduced initiatives such as the New Energy Apprenticeship program, which offers subsidies to encourage apprenticeships in the renewable energy sector. However, experts warn that the scale and pace of these efforts are not sufficient to meet the looming demand for skilled labor.
- Training Pathways: Jobs Skills Australia and the Powering Skills Organisation have outlined strategies to increase the system’s capacity to train more skilled workers. These include creating better educational pathways into renewable energy careers, particularly in the recognized Renewable Energy Zones, where much of the job growth will occur.
- Apprenticeships and Labour Hours: Jobs Skills Australia has also called for renewable energy businesses to increase their intake of apprentices. Expanding the Australian Skills Guarantee, which requires apprentices or trainees to complete 10% of labor hours on Commonwealth-funded projects, could help bolster the renewable energy workforce.
- Diversity: Another key strategy for increasing the labor supply is improving workforce diversity by including more women and First Nations Australians. Currently, only about half of First Nations Australians are employed, compared to two-thirds of the general population, but they account for around 10% of the population in some Renewable Energy Zones. Targeted pre-employment programs, in collaboration with industry and Indigenous groups, could help unlock this underutilized labor pool while having a positive social impact.
Australia’s energy transition. Coal plants are set to retire, climate change pressures are mounting, and the need to build renewable energy capacity has never been more urgent. However, achieving these goals will require not only new technology and infrastructure but also a rapidly growing workforce equipped with the right skills.
There are many pathways to increasing the supply of workers and improving outcomes for local communities, but time is running out. Without urgent and coordinated action, Australia risks missing its renewable energy targets, with serious implications for both its economy and its environment.
The workforce challenges are significant, but so too are the opportunities. With the right investments in training, diversity, and policy support, Australia has the potential to not only meet its energy transition goals but also position itself as a global leader in the renewable energy sector.
