The COP28 presidency has set a definitive objective: to increase global renewable power capacity from 510 gigawatts (GW) to over 11 000 gigawatts (GW) and enhance energy efficiency by twofold by the year 2030.
SO Talent Insights
Powering The Energy Transition
The challenge ahead
The world has always leaned on nature for its energy needs. However, the era of fossil fuels, marked by coal, oil, and natural gas, has brought us to a crossroads. The climate crisis, coupled with the limited supply of these resources, has urgently highlighted the need for transformation.
The transition to renewable energy, including wind, solar, and hydroelectric power, is a profound change with far-reaching economic and job market impacts. This shift reshapes energy production and the wider economy, presenting both challenges and opportunities.
The number of jobs in the clean energy sector was 36.2 million in 2023, this could rise to 139 million by 2030, impacted by the geographical spread of equipment production and capacity installation, in addition to the supply chain’s sourcing.
At Spencer Ogden, we know that achieving the commitments made at COP28 depends heavily on companies’ ability to attract, develop, and retain talented professionals; in this report we aim to shine a light on the talent challenge we have ahead and bring the industry together to collectively strategise for a greener future.
Here’s what you can expect from this report:
COP28 Commitments
The shift to green energy offers an unprecedented opportunity to reshape our economy, our workforce and organisations, for a more sustainable future.
Many major energy companies recognise the economic and environmental potential of transitioning. Companies like BP, TotalEnergies, Enbridge, Shell, and ExxonMobil are investing heavily in renewable energy initiatives.
However, the transition is not uniform across the industry. While some companies are making significant strides, others are only at the beginning stages of their green energy journey. Fossil fuels such as oil and natural gas will continue to make up a significant share of the global energy mix. There is still a long way to go.
A key outcome of COP28 was the Presidency taking a leading role in the launch of the Global Renewables and Energy Efficiency Pledge. A total of 130 national governments endorsed the pledge which included commitments to:
- Work together in order to collectively double the global average annual rate of energy efficiency improvements from around 2% to over 4% every year until 2030, and;
- Put the principle of energy efficiency as the “first fuel” at the core of policymaking, planning, and major investment decisions.
Signatories also declared “…their intent to work collaboratively and expeditiously to pursue objectives…” that included:
- Collaboration on resilient value chains and technology development
- Expanding financial support for scaling renewable energy and energy efficiency programs in emerging markets and developing economies
- Collaboration on accessible financing mechanisms to reduce the cost of capital in emerging markets and developing economies
- Enhancing technical support and capacity building for renewables and energy efficiency developing economies
- Accelerating cross-border grid interconnections.
Alongside governmental leaders, industry leaders are also taking steps towards greener operations and setting the stage for smaller companies to follow suit. The time to take action is now.
”Together with the COP28 presidency we have identified a clear global goal: to triple global renewable power to more than 11 TW and double energy efficiency by 2030.
Francesco La CameraDirector General, The International Renewable Energy Agency (IRENA)
”COP28's ambitious agenda has catapulted renewable energy to the forefront of global priorities. This shift presents a unique challenge for us in talent acquisition – finding individuals who are not just technically proficient but also passionate about driving environmental change.
James PipeExecutive Director, Spencer Ogden
A Snapshot of Global Markets
In regions across APAC, US, and Europe, the rise of these green initiatives has not only transformed the energy landscape but also sparked a shift in the global job market.
”The decisions made at COP28 represent a turning point for the renewable energy sector. As a workforce solutions provider, we see a growing demand for skilled professionals who not only understand renewable technologies but are also equipped to drive them forward. This is a wake-up call for talent acquisition strategies worldwide."
Scarlett LeeAssociate Director
Regional Insight: APAC
The Asia Pacific renewable energy market has been growing steadily, with the share of total electricity output marking a notable increase from 16.1% in 2010 to 22.1% in 2018. Close to two-thirds of all jobs are in Asia, where China alone accounts for 41% of the global total. This growth trajectory is expected to continue at a CAGR of 9% by 2027, underscoring the urgent need for a skilled workforce capable of sustaining and accelerating this growth.
Transitioning to greener energy
Investment in the power generation sector within the APAC region is forecasted to reach US$3.3 trillion over the next 10 years, with nearly half of this sum earmarked for wind and solar projects. This substantial investment demonstrates the region’s commitment to transitioning from traditional energy sources to greener renewables.
China is the leading global employer in renewables, employing 5.55 million, however the growth trajectory will create unique talent acquisition challenges across the wider APAC region. As countries like Australia lead in wind energy and other nations enhance their solar capacities, there is a growing need for professionals skilled in these specific technologies.
Offshore wind projects in APAC
In 2022, the wind energy sector installed 74.6 GW of capacity globally and China retained the lead with close to half of global additions. The momentum calls for specialised skills in maritime engineering, environmental impact assessment, and advanced wind technologies.
Projects and the Demand for Talent:
Growth, challenges, and opportunities
The Asia Pacific renewable energy market is not only the fastest-growing market but has also emerged as the largest market, accounting for almost 30% of global renewables. Despite the impressive growth, the sector faces key challenges, including regulatory hurdles, infrastructure limitations, and the high initial cost of renewable technologies.
This is coupled with the need for skilled labor, regulatory knowledge, and innovation capabilities. However, these challenges also open opportunities for training institutions, international collaborations in education, and corporate investments in talent development.
As the APAC region gears up for substantial growth in renewables, the focus should also be on building a capable workforce. This human-centric approach will be crucial for the sustainable and efficient transition to greener energy sources. Governments, businesses, and educational institutions must collaborate to develop and attract the talent necessary to meet the rising demand in this evolving sector.
”The outcomes of COP28 underscore a critical need for diverse talent in the renewable energy sector. To innovate and progress, we need people from varied backgrounds who bring different perspectives and solutions to the table. Our role in talent acquisition is more crucial than ever in shaping a sustainable future."
James Holden, Executive DirectorSpencer Ogden
Regional Insight: Europe
Europe has been at the forefront of the global shift towards renewable energy, with a significant portion of its energy needs already being met by renewable sources.
Renewables are nearing 40% of Europe’s total electricity generation, with solar leading the way. The region has experienced a record growth of 38 terawatt-hours (TWh) since 2021 due to around 41GW of solar power generation being added to the grid in 2022. The region’s renewable energy market is projected to continue to grow at a CAGR of 8.5% from 2022 to 2027.
Transitioning to Greener Energy
Historically, Europe has relied heavily on fossil fuels such as coal and natural gas. However, the region’s transition towards renewable energy sources in recent years is owed to amended governmental policies which are pushing for a greener economy, as well as growing public awareness about climate change.
The European Union has set ambitious targets to reduce greenhouse gas emissions, increase energy efficiency, and boost renewable energy, aiming for at least a 40% cut in emissions by 2030 compared to 1990 levels. This commitment has led to substantial investments in renewable energy infrastructure and an increase in job opportunities in the region. Europe is home to 1.8 million renewable energy jobs, with 1.6 million based in the EU’s 27 member states.
Here are Europe’s top trends:
Numerous ventures in Europe exemplify the region’s dedication to renewable energy sources and their innovative methods in harnessing wind, solar, and hydro power. These projects not only highlight technological advancement but also present unique recruitment challenges and job creation opportunities in the renewable energy sector. They include:
Growth, Challenges, and Opportunities
Despite being a mature market, the renewable energy sector in Europe faces several challenges, including securing adequate funding, integrating renewable power into existing grids, obtaining planning permissions, and managing the intermittency of renewable sources. These challenges extend into the realm of human resources, where there is a constant need for skilled professionals capable of navigating these complexities.
The market’s bright outlook offers numerous opportunities for businesses and investors, especially in energy storage, grid upgrades, and electric vehicle infrastructure. This growth also implies a rising demand for a skilled workforce, highlighting the need for targeted education and training programs to prepare individuals for these emerging roles.
The future of Europe’s renewable energy market looks promising, with strong growth projected in the coming years. The region’s commitment to reducing greenhouse gas emissions and increasing energy efficiency will continue to drive investment in renewable energy infrastructure. With strategic investments in talent development and recruitment, Europe can continue the transition towards a sustainable, low-carbon future, while also addressing the critical need for skilled professionals in this evolving industry.
”To build a wind industry that truly attracts top talent, we need a thriving supply chain, profitable developers, and a secure working environment. Success hinges on creating a sector that not only grows but excels, especially when competing for skilled professionals across industries.
Stewart MullinCOO, Global Wind Energy Council
”The ambitious targets set at COP28 require a new breed of professionals in renewable energy. Our role in talent acquisition is pivotal in identifying and nurturing these individuals who are crucial for achieving these global environmental goals.
Adam StahlerSenior Manager, Spencer Ogden
Regional Insight: North America
The renewable energy market in the United States was expected to reach 395 gigawatts in 2023 and grow at a CAGR of 10.01% to reach 700.15 gigawatts by 2028. Despite project delays and rising costs in 2022, the industry is poised for significant growth.
Data source: Mordor Intelligence, the graph has been reproduced and adapted for this report.
Transition from traditional energy to renewables
The transition from traditional fossil fuel energy sources to greener renewables is gaining momentum in the US. In 2020, renewable energy sources generated a record 834 billion kilowatt-hours (kWh), accounting for about 20% of all electricity in the country. This figure continues to grow, highlighting the country’s commitment to renewable energy.
The main trends in the US sustainable energy industry include a shift towards solar and wind power, the adoption of state Renewable Portfolio Standards (RPS), and the development of mandatory markets. Solar capacity has grown at an average of 24% annually over the last decade.
The challenge for North America lies not only in maintaining this growth trajectory but also in ensuring there is a sufficient pool of skilled labor to support these ambitious projects. The industry must address potential skill gaps, especially in emerging renewable technologies, and invest in training and development programs to prepare the workforce for the future landscape of the energy sector.
Recent projects that demonstrate the diverse ways in which the North America is investing in renewable and carbon-free energy sources, include:
Graduates entering Renewables
U.S. graduates are increasingly interested in renewable energy careers due to environmental concerns, policy changes and the industry’s growth. Attractive salaries, often above national averages, and the opportunity to contribute to environmental sustainability make this sector appealing. For many, it’s not just a job, but a chance to make a real difference.
Solar legislation and its impact on jobs
Solar legislation in the US, such as tax credits and net metering policies, has had a positive impact on job creation. These policies stimulate the industry and create jobs, leading to an increased demand for skilled workers in the field. As the solar market continues to expand, so does the potential for job growth in the sector.
Both the transition from traditional energy forms to renewables and the growth of the renewable energy market are creating new opportunities for recent graduates and contributing significantly to job creation in the US.
”COP28's ambitious agenda has catapulted renewable energy to the forefront of global priorities. This shift presents a unique challenge for us in talent acquisition – finding individuals who are not just technically proficient but also passionate about driving environmental change.
Mindy PreflingAssociate Director, Key & Strategic Accounts, Spencer Ogden
The critical role of energy storage
Renewable energy, for all its benefits, relies on unpredictable natural elements. The sun doesn’t always shine, and the wind doesn’t always blow. Hence, matching the supply of renewable energy with demand is a complex task. The solution? Energy storage.
As the demand for renewable energy storage escalates, a myriad of technologies have emerged. These range from mechanical and thermal methods to electrochemical and hydrogen-based solutions. Each technology brings its unique advantages and challenges to the table.
Implications for job opportunities and skills
As the world makes strides towards a cleaner, greener future, renewable energy storage is poised to play a pivotal role. Not only does it ensure a constant supply of power, but it also prevents wastage of renewable resources. As the sector expands, the demand for skilled professionals in the field is set to rise, creating myriad career opportunities.
In a world increasingly conscious of its carbon footprint, the renewable energy storage sector represents a sustainable path forward, offering both environmental benefits and exciting career prospects. To those interested in making a difference, the sector beckons with open arms.
”COP28's focus on sustainable energy transition is a clarion call for talent that can drive innovation. In recruitment, we're not just looking for skills; we're seeking visionaries who can lead the charge in this rapidly evolving landscape.
Henry De LusignanCEO, Spencer Ogden
The Talent Challenge
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Demand for Skills Booms
With the sustainable energy sector’s boom is an increase in job availability. Skills demand is increasing in tandem.
Globally, various regions are contributing to this growth in distinct ways. For instance, in the UK the renewable energy sector has seen a steady growth in job availability, with an estimated 200,000 people employed in low carbon and renewable energy activities as of 2020. That figure has escalated further since then. This increase can be attributed to the UK’s commitment to reducing greenhouse gas emissions to net zero by 2050, which has driven up demand for sustainable energy solutions and, consequently, skilled professionals in this sector.
In the United States, the President’s goal of running an electrical grid on 100% carbon-free sources by 2035 has further catalysed job growth. North America, in particular, has a significant proportion of its economy-wide employment within the energy sector, totalling 7.9 million jobs.
Similarly, in APAC, rapid industrialisation and increasing environmental awareness have spurred growth in renewable energy jobs, with China and India leading in solar and wind energy production.
”Post-COP28, the renewable energy industry is set to expand exponentially. This growth is an exciting opportunity but also a substantial challenge in talent acquisition. We must now focus on building a workforce that is as dynamic and forward-thinking as the renewable technologies they will work with.
Tom ReidCOO, Spencer Ogden
Key skill areas that are consistently in demand across the sector include:
Despite the high demand for these skill sets, the sector faces a challenge of oversupply in certain job areas. However, the rapid expansion and technological evolution of the sector necessitate continuous upskilling and training. Addressing the skills gap is critical for the sustained growth and success of the renewable energy sector. As the sector evolves, so does the need for a workforce that is versatile, adaptable, and equipped with a blend of technical, managerial, and environmental skills.
Hot Careers in Renewables
Here are the top 11 careers that are shaping the industry:
Battery Engineer
Wind Farm Site Manager
Geoscientist
Civil Engineer
Financial Analyst for Renewable Energy Companies
Solar Project Developer
Solar Power Plant Operator
Solar Project Manager
Renewable Energy Consultant
Scientific Researcher
Industrial Engineer
Transitioning Talent
Traditional energy industries like oil & gas have a wealth of expertise that is valuable to the renewable sector, including competencies in project management, engineering, and operations. By recognising and valuing these overlapping skills, companies can strategically attract experienced professionals from fossil fuels and offer them a meaningful transition into a sustainable future.
Investing in targeted training and development programs is another critical route to explore. These programs are designed not just to facilitate the skill transition for professionals moving into the renewable energy sector but also to provide ongoing education and development opportunities. A continuous learning environment is essential to keep pace with the rapid advancements in technologies and to retain key talent.
Offering competitive salaries is vital in this highly competitive market. The high demand for skilled professionals means that attractive remuneration packages, along with comprehensive benefits and career development opportunities, can be decisive factors in drawing talent from other industries.
However for talent, the most critical factor is often real career growth and a sense of purpose. The renewable energy sector inherently offers roles that contribute to a sustainable and environmentally responsible future. This aspect of meaningful work, aligned with personal values and global sustainability goals, is a significant draw for professionals, especially those seeking not just a job, but a career with impact and purpose.
”COP28 has highlighted the urgency for innovative solutions in renewable energy. As executive recruiters, our task is to find not only the best minds but also those who are deeply committed to environmental sustainability. This is a unique and exciting challenge in talent acquisition.
Lars GloessnerExecutive Director, Spencer Ogden
Companies leading the way
There are numerous examples of companies that have already effectively transitioned talent from fossil fuels to renewables.
Take Danish company, Ørsted, for instance. Formerly an oil and gas company, they successfully transitioned into a renewable energy company that is now the world’s largest offshore wind energy operator. This transition involved significant reskilling and upskilling of their workforce, demonstrating a successful model of talent transition. Their Former Chief Executive Officer, Henrik Poulsen, says,
“As a business, you have to make a profit, but you also need to make a broader contribution to society. We learned that these things aren’t in opposition to each other. In fact, they go hand in hand.”
Ørsted’s website tells the story of how they were “…once one of the most coal-intensive energy companies in Europe.” Yet today, they are ranked one of the most sustainable businesses in the world.
The organisation explains, “Our business transformation is a story of technological innovation, steep learning curves and difficult strategic choices that have led to long-term gains.”
By 2040, Ørsted’s aim is for their entire value chain to be carbon-neutral.
French multinational integrated oil & gas company, TotalEnergies, is another organisation that made headlines when it announced plans to transform into a broad-energy company. It is now investing in renewable energy projects and has set a target to reach 35 GW of renewable energy production capacity by 2025.
”“As a business, you have to make a profit, but you also need to make a broader contribution to society. We learned that these things aren’t in opposition to each other. In fact, they go hand in hand.”
Henrik PoulsenFormer CEO, Ørsted
TotalEnergies describes how a core part of its strategy is “focusing on circular resource management and deploying less mature technologies at our own sites to test their business viability.”
Shell, another major player in the oil & gas industry, is a further example of an organisation that has been increasingly investing in renewable energy projects. It too aims to become a net-zero emissions energy business by 2050. To achieve this, Shell is not only investing in renewable energy projects but also actively recruiting and retraining professionals with traditional energy skills.
Over the course of a decade, Shell plans to help “15,000 people into jobs with a focus on the energy transition. This includes a focus on developing skills that will support their journeys into employment to ensure that the transition is an opportunity for everyone.”
These efforts are in addition to Shell’s dedication to helping customers to transition to electric vehicles (EV) through providing charging points both at home and on the road. With more than 40,000 public charging points positioned globally, their aim is to have around 70,000 by 2025 and 200,000 in total including home EV charging points. Shell states, “We’re committed to providing customers with the most convenient EV experience by enabling them to change where, when and how they want.
Transitioning talent from fossil fuels to renewables is a complex but necessary process. What the above examples demonstrate however, is that with innovative strategies, transition is not only feasible but can also offer immense opportunities for growth and success in the renewable energy sector.
Addressing the talent gap in a changing climate
COP28’s pledge confirmed the need for “deep, rapid and sustained reductions if humanity is to limit temperature rises to 1.5C above pre-industrial levels.” And as we conclude our discussion, it’s clear that the transition to sustainable energy is not just a trend; it’s an imperative, permanent shift that will shape all our futures.
We have identified that the renewable energy sector offers vast job opportunities and the demand for skilled professionals in this sector has skyrocketed. However, this demand is met with a skills gap, causing organisations that need renewable energy skill sets to adapt their people strategies to remain competitive.
We have further delved into some of the tried and tested strategies for transitioning talent from fossil fuel industries to renewables. By recognising the transferable skills of professionals in the fossil fuel industry and offering comprehensive training and development programs, companies can effectively bridge the skills gap. And real-world examples, such as Ørsted, TotalEnergies, and Shell, teach us that this transition is not only possible but also beneficial for companies willing to invest in transitioning to green energy, as well as the associated talent development.
The importance of these findings cannot be overstated. As we move towards a more sustainable future, addressing the skills shortage in the renewable energy sector becomes paramount – not just an environmental necessity but also a significant economic opportunity. It’s not just about creating jobs; it’s about ensuring that we have the skilled workforce necessary to drive this transition, and even accelerate it, ensuring a more sustainable future for all.
Once more quoting IRENA’s Francesco La Camera, he’s hopeful for the future, commenting, “Can we course-correct? I firmly believe we can…and we must.”
”Can we course-correct? I firmly believe we can…and we must.
Francesco La CameraDirector General, The International Renewable Energy Agency (IRENA)
Our pledge
At Spencer Ogden, we are deeply committed to the principles and goals outlined by COP28, particularly in addressing the critical talent gap in the renewable energy sector. We understand the pivotal role that talent acquisition and management play in achieving the ambitious targets set by COP28 and pledge to actively collaborate with organisations and institutions worldwide to bridge this talent gap.
Our commitment includes working closely with educational institutions to nurture the next generation of renewable energy professionals. Additionally, we will engage with industry leaders to understand their talent needs and develop targeted recruitment strategies that align with the goals of COP28.
Through our global network and expertise in energy recruitment, we are dedicated to finding and placing the right talent in roles where they can make a significant impact. We recognise that the success of COP28 is contingent on the collective efforts of governments, businesses, and communities. As such, Spencer Ogden is fully committed to doing our part in supporting these goals, ensuring that the renewable energy sector is equipped with a skilled, diverse, and dynamic workforce, ready to tackle the challenges of a sustainable future.
For companies, policy makers and job seekers, our recommendations are:
”In the wake of COP28, it's imperative that we reimagine our approach to hiring, embedding the principles of sustainability and innovation at the heart of our recruitment strategies. As we navigate the shifts in the renewables sector, our talent acquisition practices must not only align with the urgent climate goals set but also anticipate the evolving skills landscape. By doing so, we can ensure that our workforce is not just equipped for today's challenges but is also resilient and adaptable for the future.
Stewart McArthurManaging Director, Spencer Ogden
Companies
Recognise transferable skills: Tap into the wealth of expertise in traditional energy sectors by recognising and valuing transferable skills. Professionals in these sectors often have valuable experience in project management, engineering, and operations that can be beneficial in the renewable energy sector.
Invest in training and development: Provide comprehensive training programs to help your workforce transition their skills to the renewable energy sector. Continuous learning opportunities are key to keeping up with the rapidly evolving industry and retain the very best talent.
Offer competitive remuneration packages: Given the high demand for skilled professionals in the renewable energy sector, attractive remuneration packages can be a significant draw for talent from other industries.
Policymakers
Promote renewable energy education: Encourage educational institutions to offer courses and degrees in renewable energy. This will help build a pipeline of skilled professionals ready to enter the industry.
Incentivise transition: Provide incentives for companies making the shift from fossil fuels to renewable energy. This could be in the form of tax breaks, grants, or subsidies.
Support research and development: Funding for research and development in renewable energy technologies can spur innovation and create new job opportunities.
Job Seekers
Embrace lifelong learning: The renewable energy sector is rapidly evolving. Stay ahead by continually updating your skills and knowledge.
Highlight transferable skills: When applying for jobs in the renewable energy sector, highlight your transferable skills from previous roles in your CV and application.
Seek out opportunities for growth: Look for companies that offer training and development opportunities. This not only helps you transition your skills but also provides a pathway for career growth in the renewable energy sector.
By adopting these recommendations, we can collectively address the skills shortage in the renewable energy sector and accelerate the transition to a sustainable future.
About Spencer Ogden
As global recruitment experts in energy and infrastructure Spencer Ogden is continuously working to create careers to power a sustainable future for our clients and candidates.
With technology at the heart of the process, from financing to operational execution, we break new ground at every stage of the project life cycle. And it’s our mission to create a dynamic and sustainable legacy in the ever-changing landscapes we cover.
If you are in renewables or are an energy business looking to transition to a more sustainable strategy, we can help. Whether you need contract or permanent expertise to help on your journey to becoming a greener organisation, we lead the market when it comes to placing talent where it’s needed. We are deeply embedded within renewables and are passionate about making a difference today, for tomorrow.
Contact us to discuss your sustainable energy needs and how we can support you on your journey.