Charged Up: Strategies for Addressing the Skill Shortage in Electrical Trades for the Clean Energy Transition

September 4, 2024

Post Carbon Economy

The Federal Government has a big agenda to drive Australia’s clean energy transition with the goal of turning our sunburnt and windswept country into a Renewable Energy Superpower. And this is a plan to make sure that we have the workforce to do it.

The Federal Government’s ambitious plan to transform Australia into a Renewable Energy Superpower requires a corresponding ambition to fix critical shortages in the electrical workforce. This crisis, long in the making, took root during the almost decade-long failure of the previous Federal Government to prepare for the inevitable shift towards renewable energy. Without a workforce, our nation’s energy future can’t be built.

Wilful inaction and climate scepticism left Australia woefully unprepared for the massive workforce demands of a clean energy future. Now, the current Labor government faces the daunting task of playing catch-up. The nation must grapple with a forecast shortfall of nearly 100,000 electricians by 2050.

The consequences of this neglect are stark: without swift and decisive action, Australia cannot meet its emissions reduction targets, potentially facing international censure and economic repercussions. While the transition may still happen in the long run, it will be bumpy, expensive and delayed. 

To become a Renewable Energy Superpower the government needs to charge up its electrical workforce.

The Government is already investing an unprecedented $91 million to invest in skilling the clean energy workforce. This funding begins to reverse decades of neglect in the VET sector. It is a downpayment on the workforce investment needed to deliver the energy transition. But it only gets us to the starting block.

The problem is clear: employers aren’t hiring apprentices, and training centres are already operating at capacity. And the issues don’t stop at enrolment. 

Electrical apprentices are abandoning their training at an alarming rate. Poor wages, toxic workplace cultures, and inadequate support systems are driving thousands away every year. Not only does this jeopardise Australia’s international climate commitments, it also threatens its basic energy security.

While some industry-led programs show promise with high completion rates, they remain isolated bright spots in a broken system. Decisive action is needed if we are to decarbonise our economy and build a Future Made in Australia.

Adding to the urgency is the global nature of the clean energy transition. As nations worldwide race to electrify and decarbonize, Australia can no longer rely on the lazy policy solution of importing skilled electricians from abroad. The competition for these workers will be fierce, and Australia must develop its own robust domestic workforce to meet the challenge.

This report outlines the barriers to building and retaining a skilled electrical workforce and charts a comprehensive roadmap to develop the workforce that will light the way to a clean energy future:

Recommendations

  • That the Federal Government implement labour conditionality in all forms of public investment and government funded support to deliver the workforce and social licence needed to drive the energy transition. 
  • That the Federal Government funds the expansion of industry-led Registered Training Organisations (RTOs), in partnership with TAFE, including support for infrastructure development.
  • That the Federal Government invest in industry-led apprentice mentoring and support programs.
  • That the Federal Government embed industry-led Group Training Organisations in all Renewable Energy Zones.
  • That the Federal Government implement an industry-led Electrical Industry Labour Agreement, where genuine skills shortages are identified.
  • That the Federal Government develop and implement a wage supplement scheme to support qualified industry professionals from critical clean energy occupations to undertake training, and qualify to work as Vocational Education and Training teachers and trainers.
  • That the Federal Government establish a Clean Energy Jobs Commissioner to support industry and Government to create and support good, well-paid and secure jobs through the transition.