Why People, Not Technology, May Be the Biggest Energy Transition Challenge

Why People, Not Technology, May Be the Biggest Energy Transition Challenge

Authored by: Matthew Curnow

The global energy transition is often discussed through the lens of technology, infrastructure and investment.

Solar panels are cheaper than they once were. Battery storage is improving. Governments are setting stronger renewable energy targets. Global clean energy investment is now measured in the trillions.

Yet one of the biggest constraints facing the industry is not whether the technology exists.

It is whether there are enough skilled people to deliver it.

“Technology may create the opportunity, but skilled workers are what turn targets, infrastructure and investment into real-world outcomes.”

Clean Energy Growth Is Moving Faster Than Workforce Growth

The energy workforce is growing quickly. According to the International Energy Agency’s World Energy Employment 2024 report, global energy employment reached more than 67 million workers in 2023.

Clean energy employment also moved ahead of fossil fuel employment, reaching approximately 34.8 million jobs compared with 32.6 million jobs in fossil fuel sectors.

Key workforce signals

  • Clean energy employment reached approximately 34.8 million jobs globally
  • Fossil fuel employment reached approximately 32.6 million jobs
  • Total global energy employment reached approximately 67.5 million workers
  • Energy job growth is being driven by record investment across the sector

This growth is positive, but it also creates pressure. The industry can scale technology faster than it can build experienced electricians, engineers, project managers and technical leaders.

The Skills Gap Is Becoming a Global Constraint

The challenge is not simply a lack of workers. It is a shortage of people with the right technical experience to deliver increasingly complex energy projects safely and efficiently.

This is being felt across multiple markets including Australia, the United States, Canada and Europe. Businesses are competing for electricians, energy specialists, engineers, installers, project managers and senior operational staff.

“One of the biggest misconceptions is that workforce growth is purely a recruitment problem. In reality, experience takes years to build. You can purchase technology quickly. Developing operational expertise takes far longer.”

The IEA’s later energy employment analysis also points to skills shortages, training costs and awareness of energy career pathways as ongoing barriers.

 Why Experience Matters More Than Headcount

Hiring more people does not automatically create more capability.

Many energy businesses can recruit faster than they can train. That creates a gap between workforce size and workforce readiness.

Workforce issue

Operational risk

Rapid hiring

Inconsistent standards across teams

Senior staff retiring

Loss of practical site knowledge

More complex projects

Greater safety and compliance pressure

Weak internal systems

Over-reliance on a small number of experienced people

In practical terms, a business may have enough staff on paper but still lack the experience needed to manage project staging, compliance, shutdowns, customer expectations and technical risk.

The Hidden Operational Risk Behind Rapid Growth

Fast-growing industries often put pressure on training systems. When demand rises quickly, businesses can be forced to promote people earlier, stretch senior staff across more projects and rely on informal knowledge transfer.

That can work for a while, but it becomes risky at scale.

Safety, compliance and project quality all depend on more than technical equipment. They depend on the judgement of people who understand what can go wrong on site and how to prevent it.

The real issue

The energy transition is often framed as an engineering challenge. Increasingly, it is also a workforce development challenge.

 What Businesses Need To Focus On Next

Businesses that want to scale in the energy sector need to think beyond recruitment. They need systems that help people build capability faster without relying on one or two senior staff to carry the operational knowledge.

  • Build clearer internal training pathways
  • Capture knowledge from experienced staff before it is lost
  • Develop future technical leaders earlier
  • Create career progression that helps retain skilled workers
  • Improve operational systems so quality does not depend on memory alone

This matters because the energy transition will not be delivered by policy announcements or investment targets alone. It will be delivered by people planning, installing, managing and maintaining real systems in real operating environments.

“The businesses that develop people well will be better placed to deliver the projects everyone is relying on.”

 About the Author: Matthew Curnow is Managing Director of Energy Buster, an Australian energy efficiency and sustainability company focused on helping businesses improve energy performance and operational outcomes.

 Sources

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