The renewable energy sector has grown significantly worldwide as countries commit to reaching Net Zero by 2050. The UK government has its own targets in place to achieve a “clean power grid” by 2030. With only 6 years left, the pressure on renewable energy businesses to rapidly grow and provide clean energy to the national grid is getting more demanding but difficult to navigate due to talent shortages across the sector.

As a snapshot of the extent of talent challenges the sector faces, according to statistics, only 30% of the workers needed to construct and operate a planned offshore wind project by 2026 have been trained. Other renewable projects are facing similar significant talent challenges across the UK, as ambitious targets to decarbonise the grid are looking uncertain.

The state of the renewable energy sector

As countries commit to tackling the climate crisis, the renewable energy sector has experienced high demand and significant investment. In the UK, during the 2024 Autumn Budget, a national wealth fund was announced, with the aim of it producing £70 billion worth of private investment for the clean energy sector, among other green energy funding promises and commitments.

While the sector has seen significant growth, it has faced many obstacles in talent acquisition that threaten to delay projects and progress. McKinsey has estimated that by 2030, the renewable energy sector will need 1.1 million workers with varying qualifications and skillsets to develop wind and solar plants, as well as 1.7 million professionals to operate and maintain them. In order to reach these numbers, it is clear that the renewable energy sector desperately needs to act to attract and retain key workers in the field.

What are the main talent challenges that renewable energy businesses face?

Skills shortages

Finding professionals that have the right skills is one of the main talent challenges for renewable energy businesses. As renewable energy is an emerging industry, career progression and training programmes have not yet been codified. This means that creating standards and hiring candidates with the correct balance of skills and experience is difficult.

The leading body for the UK’s offshore energy industry, OEUK have argued that there needs to be more streamlined and coherent strategies and initiatives in place to produce enough workers to handle the demands of the renewable energy sector. The body suggests that these initiatives should tackle talent challenges in the renewable energy sector through a focus on attraction and retention, facilitating clear streamlined training and career pathways for candidates so that they understand their potential career progression.

There has been talk of workers with oil and gas backgrounds transferring their skills into this up and coming sector. Whilst this might work in some cases, there is chronic talent challenges across the energy sector which means this pool of talent would not be enough to fill the gap.  

The demand for oil and gas is not yet decreasing and the industry is facing an aging workforce, high numbers of retirees, and a lack of  young people attracted to work in the sector to replace them. This means that renewable energy businesses are going to have to think outside the box in order to hire and train candidates outside of the energy sector.

Long training periods

Gaining specialist knowledge in solar, wind and geothermal energies takes time, and many workers often need certifications in order to work in specific roles. This limits the available candidate pool. Furthermore, the length of training required can put off candidates from entering or remaining in the renewable energy sector.

Additionally, rapid technological advancements in renewable energy means that employees are required to continuously upskill to keep up with innovations. This is not always possible or attractive to all workers, making finding specialist employees one of the key talent challenges the renewable energy sector faces.

Organisations need to ensure that they are prioritising training, development and the support of entry-level candidates through these processes to ensure they are retained in the industry.

Remote locations

There is a significant issue around the  attraction of candidates to remote locations, which is contributing to the overall talent challenges the renewable energy market is facing.

Renewable energy projects are often located in remote areas or offshore. These locations sometime have limited housing options for workers, as well as poor transportation links to other cities, which can make these roles an unattractive prospect for some candidates.

As some may need to be away from friends and family for an extended time, organisations need to ensure that compensation packages are attractive to balance this issue and offer support with relocation packages.

Another option is offering remote working. Of course, offering remote working options is not suitable for all roles. However, in the roles where it is possible, organisations may find it easier to recruit and attract great professionals.

Infrastructure problems

The scale of growth needed for renewable energy businesses to help the UK reach its Net Zero targets is no easy feat. Despite the new Energy Secretary Ed Miliband announcing an increase in government funding to £1.5 billion to support the growth of infrastructure within the sector, there are significant barriers.

Billions of pounds worth of projects, such as solar and wind sites, are being delayed by up to 10-15 years as they cannot connect to the national grid. As sites wait to get connected to the grid, this causes uncertainty and problems in hiring and retention on projects.

This lack of confidence in whether projects can advance also leads to a hesitancy in hiring employees and reduced investment in education and training. Thus, creating a reduced number of candidates ready and willing to work in the renewable energy sector.

Competition from other industries

All of the talent challenges the renewable energy sector faces are compounded with the problem of high competition from other industries. Some roles are so niche to the renewable energy sector, meaning there’s less opportunity to face direct competition from industries, without the employee changing careers. However, other roles, such as project managers, mechanical engineers, or even back-office roles such as finance managers, that are all important to the running of renewable energy businesses, could be applicable in many sectors.

Between unstable projects, remote locations and upskilling demands, the attraction of new candidates and the retention of current employees is a real challenge for the renewable energy sector.

Consult Energy are energy recruitment specialists who can offer you support in hiring excellent talent that your organisation needs. For more information, get in touch with our team here.