Intergenerational roundtable: Closing the skills gap for enhanced energy transition readiness

At the 26th World Energy Congress in Rotterdam in April 2024, the Future Energy Leaders of the Netherlands hosted an Intergenerational Roundtable on 'Closing the Skills Gap for Enhanced Energy Transition Readiness.' This roundtable gathered seasoned energy leaders and emerging professionals from diverse backgrounds to share insights and perspectives on effectively addressing the skills gap in the energy sector. The discussion centred on critical questions, examining the future trajectory of skills in energy, identifying persistent barriers, and exploring strategies to enhance readiness for the energy transition. The outcome was a set of collective, actionable recommendations designed to improve energy transition readiness at local, national, and global levels by closing the skills gap.

Background

The outcomes of COP28 underscores the urgent need to triple renewable energy capacity and double energy efficiency measures to meet global energy transition objectives. In response, nations worldwide have launched ambitious initiatives—such as Energy Transition Plans, Inflation Reduction Acts, and the EU Green Deal—demonstrating a strong collective commitment to these goals. However, the successful implementation of these plans and the enhancement of energy transition readiness require more than just technological advancements, supportive policies, and financial investments; they demand a highly skilled workforce to drive execution.

In simple terms, there is a significant green skills gap. According to LinkedIn’s  Global Green Skills Report 2023, only one in eight people currently possess skills relevant to abating the climate crisis, indicating that the demand for green skills far exceeds the available talent pool. As green job vacancies increase, the shortage of workers with the necessary green skills becomes more apparent. Therefore, the success of energy access and transition efforts hinges on the availability of individuals with the expertise to effectively implement these initiatives. Without addressing this skills gap and taking proactive steps to attract, retain, and adequately train talent, our ability to achieve energy transition goals could be severely compromised. Prioritising the development of these critical skills is essential.

Our intergenerational roundtable dialogue resulted in mapping persistent barriers and evaluating the future of skills in the energy sector. From these discussions, participants identified four key recommendations to close the skills gaps and boost global readiness for the energy transition. These insights offer a clear path forward to significantly enhance our preparedness for the energy transition.

Persistent barriers to closing the skills gap

On average, when participants were asked to rate their country's preparedness level for achieving the 2030 energy transition targets in relation to skills, they ranked it 5.2 out of 10. This moderate rating reflects the persistent barriers that still need to be addressed to make meaningful progress. The following barriers were identified:

• Educational misalignment: Current education systems are not adequately preparing students for the future needs of the industry. Curricula are often outdated, lacking integration with emerging technologies and sustainability practices. Traditional educational pathways are slow to adapt to the rapid changes in the energy sector, leaving graduates ill-equipped for future challenges.

• Lack of STEM engagement: There is a significant lack of interest in STEM and green jobs among young people, due to perceived difficulties in these subjects, inadequate job prospects, and a lack of relatable role models in these fields. This discourages many from pursuing STEM careers.

• Insufficient policy support: There is a gap in policies that actively promote and support skills development in the energy sector. Without strong governmental backing and incentives, educational institutions and businesses struggle to align their training programs with the needs of the energy transition.

• Socioeconomic barriers: Factors such as gender, ethnicity, and economic status hinder access to education and job opportunities in the energy sector. Underrepresented groups often face additional challenges like financial constraints, limited access to quality education, and discriminatory hiring practices.

• Perceived job security and compensation: Jobs in the energy sector, especially in emerging fields like renewable energy, are often perceived as less stable or lucrative compared to traditional energy roles in oil and gas. This perception deters individuals from pursuing careers in green energy, despite the growing demand and potential for long-term growth in these sectors.

Among these barriers, participants identified educational misalignment and the lack of STEM engagement as the most critical to address. Tackling these issues would significantly impact progress toward energy transition goals by ensuring a steady pipeline of skilled professionals ready to meet future challenges. Addressing these barriers requires a multifaceted approach, including reforming education systems, promoting STEM careers, and providing robust policy support.

Projected trajectory for future skills in the energy sector

Participants strongly believe that the energy sector is poised for a transformative decade as we approach 2030 and they anticipate a surge in demand for expertise in renewable energy technologies, energy efficiency, and sustainable practices. Participants identified several key competencies essential for navigating the complex landscape of the energy transition. These include technical skills in renewable energy technologies, interdisciplinary knowledge, change management, stakeholder engagement, and digital skills.

These competencies are vital for integrating new technologies, managing diverse stakeholders, and ensuring sustainable practices within the sector. The need for skilled professionals is especially critical in areas such as solar and wind energy, energy storage systems, smart grid technologies,  grid reinforcement, energy efficiency, and electric vehicle infrastructure. As these technologies advance, the skill sets of professionals must evolve accordingly.

Moreover, the integration of digital skills, such as data analysis and cybersecurity, is becoming increasingly important as the energy sector increasingly relies on digital technologies and data-driven decision-making. This shift underscores the necessity for a workforce adept at both traditional energy practices and cutting-edge digital innovations.

Four recommendations: Building a clear path forward for enhancing skills readiness

Participants indicated that there is significant potential to improve their country’s preparedness if the right strategies are effectively implemented to align with the projected future skills trajectory in the energy sector. They believe that if at least three of the identified barriers are addressed, their country’s energy transition readiness in relation to skills could rise to approximately 7.8 out of 10. To address these barriers and effectively deploy solutions aligned with the future skills needed in energy, four key recommendations emerged from the dialogue.

Synchronise skills development with technological innovation

Ensuring that skills development keeps pace with technological advancements is paramount. The outcomes of COP28, which emphasise tripling renewable energy and doubling efficiency by 2030, underscore the need for continuous learning and adaptation. To achieve this, the following strategies were proposed:

• Regular curriculum updates: Education systems must frequently update curricula to incorporate the latest technological advancements and sustainability practices. This includes integrating hands-on training with new technologies, fostering innovation, and encouraging problem-solving skills.

• Lifelong Learning: Encouraging a culture of lifelong learning can help professionals stay updated with industry developments. This involves creating opportunities for continuous professional development, such as online courses, workshops, and certification programs that allow professionals to update their skills as technologies evolve.

• Vocational Training and Mid-Career Courses: Expanding vocational training and courses for mid-career professionals can help bridge the skills gap quickly. These programs should be designed to reskill and upskill individuals who are already in the workforce but need additional training to transition to new roles in the energy sector.

• Industry & Public Authorities Partnerships: Public authorities and industry partnership can enhance the effective design and implementation of training programs. This will ensure that the skills being taught are directly applicable to current and future job requirements. This can include apprenticeships, internships, and other hands-on learning opportunities that provide real-world experience.

Integrating skills into energy transition plans

Effective energy transition plans must incorporate comprehensive skills development strategies. The following strategies were proposed to achieve this:

• Stakeholder Engagement: Engaging local communities and stakeholders in skills development initiatives ensures that the workforce is prepared for new job opportunities. This involves creating partnerships with community organisations, local governments, and industry leaders to identify skills gaps and develop targeted training programs.

• Public-Private Partnerships: Collaboration between governments, educational institutions, and the private sector can create robust training programs tailored to industry needs. Public funding can support educational initiatives, while private companies can provide resources, expertise, and job opportunities for trainees.

• Clear Career Pathways: Providing clear and attractive career pathways in the energy sector can help retain talent. This includes outlining the progression from entry-level positions to advanced roles, highlighting opportunities for advancement, and showcasing the potential for long-term career growth in the energy sector.

• Incorporating Skills Development into Policy: Ensuring that energy transition policies include provisions for skills development can create a more coordinated and effective approach. This might involve setting targets for training and upskilling, providing funding for educational initiatives such as subsidy schemes, and incentivising companies to invest in their workforce.

Ensuring fit-for-purpose education systems

Education systems need a radical overhaul to stay relevant. Key strategies include:

• Incorporating ESG and Societal Values: Education should emphasise environmental, social, and governance (ESG) values to prepare students for a purpose-driven career. This involves integrating sustainability concepts into all levels of education, from primary schools to universities, and encouraging students to consider the broader impact of their work.

• Inclusive Education: Ensuring diversity and inclusion in educational programs can help attract underrepresented groups to the energy sector. This includes creating supportive environments for women, minorities, and disadvantaged communities, providing scholarships and mentorship programs, and actively promoting diversity in STEM fields.

• Focus on STEM and Innovation: Greater emphasis on STEM education and innovation can cultivate a future-ready workforce. Schools and universities should prioritise STEM subjects, offer hands-on learning experiences, and encourage students to participate in research and development projects.

• Adapting to Change: Education systems must be flexible and adaptable to keep up with the rapid pace of technological and societal changes. This involves regularly reviewing and updating curricula, incorporating new teaching methods and technologies, and fostering a culture of innovation and continuous improvement.

• Promoting Lifelong Learning: Encouraging a culture of lifelong learning can help individuals stay updated with industry developments and adapt to new challenges. This includes providing access to online courses, professional development programs, and other learning opportunities throughout an individual's career.

Effective communication and collaboration

Communication and collaboration are crucial for closing the disconnect between industry needs and education. Strategies to achieve this include:

• Youth Engagement: Actively promoting energy careers to young people through media campaigns and school programs can spark interest in STEM and green jobs. This includes showcasing the diverse opportunities available in the energy sector, highlighting successful role models, and addressing common misconceptions about STEM careers.

• Industry-Academia Partnerships: Strengthening partnerships between industry and academia can ensure that educational programs align with real-world needs. This can involve joint research projects, guest lectures from industry professionals, and collaborative curriculum development.

• Intergenerational Knowledge Exchange: Facilitating knowledge exchange between different generations can foster innovation and retain institutional knowledge. This includes creating mentorship programs, encouraging collaboration between experienced professionals and young talent, and promoting a culture of learning and sharing.

• Transparent Communication: Clear and transparent communication about the skills needed for the energy transition can help align efforts across different sectors. This includes providing accessible information about job opportunities, required skills, and available training programs.

• Public Awareness Campaigns: Increasing public awareness about the importance of the energy transition and the opportunities it presents can help build support for skills development initiatives. This involves using various media channels to reach a broad audience and highlighting the societal benefits of a skilled workforce in the energy sector.

• Leverage youth network as a lever to reach more young people : Utilising existing youth networks as a lever to reach and engage more young people can amplify efforts in promoting energy sector careers. These networks can help disseminate information, organise events, and foster peer-to-peer learning, making it easier to connect with a larger, more diverse group of potential future professionals.

• Reverse mentoring within your organisation: Implementing reverse mentoring programs within organisations can be highly effective. In reverse mentoring, younger employees mentor senior staff, particularly on areas like digital skills and emerging technologies. This not only fosters mutual learning but also helps bridge generational gaps and brings fresh perspectives to leadership teams.

Concluding Remark

The Future Energy Leaders, the Netherlands' Intergenerational Roundtable outcomes at the 26th World Energy Congress underscores the critical importance of responsible leadership, inclusive education, and effective communication in closing the skills gap for energy transition readiness. Addressing this gap is an urgent requirement to meet the ambitious targets set for 2030. Our success in achieving a sustainable energy future depends on our commitment to equipping every professional with the necessary skills to contribute to a greener, more sustainable world. While key recommendations and strategies have been outlined, decisive action from both policy and industry is essential to ensure that skill gaps do not impede progress.

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