Inside the skills crunch: The missing link in Australia’s energy transition

Billions are being poured into new generation, storage, transmission, and hydrogen, but the workforce underpinning these projects is emerging as the critical constraint. From grid operators and engineers to electricians and apprentices, the success of the transition rests on delivering coordinated, deeply technical upskilling across the entire workforce.

As coal, gas, and thermal power decline, the projects replacing them are not only larger in scale but also far more complex. Grid modernisation, large-scale renewables, distributed energy integration, hydrogen electrolysis, and electrification of transport and heating all demand specialised competencies. The challenge is not simply one of numbers — it is one of quality, transferability, and system-wide coordination.

Engineering and trades at the core

The cornerstone of the transition lies in redeploying engineering expertise. Electrical engineering and grid operations are emerging as the most critical disciplines for integrating renewable generation and managing system stability. Trades in renewable installation and maintenance — from solar PV to large-scale wind and storage — must be backed by harmonised licensing and safety frameworks. At the distribution edge, expertise in distributed energy resources (DER) and energy management systems will be essential to demand flexibility and grid optimisation.

Though many engineers possess the skills to move into renewables, research from Engineers Australia suggests that their greatest contribution may come not through lateral technical transfers but by stepping up into leadership.

“Engineers from carbon intensive industries bring highly transferable skills in systems thinking, project delivery and safety – all critical to grid modernisation and renewable energy,” explained Katherine Richards, Chief Engineer at Engineers Australia. “Where targeted training and policy alignment exist, we are seeing significant and smooth transitions and strong redeployment outcomes.”

Engineers Australia’s Chief Engineer, Katherine Richards

This focus on recognition of existing competencies is being matched on the trades side. The Clean Energy Council’s Clean Energy, Job Ready program is developing a national skills matrix, passport, and career pathways framework. The intent is to allow electricians, apprentices, and tradespeople to shift seamlessly between traditional roles and renewables without duplicative licensing or training.

Transition in Practice

Several companies are demonstrating how structured redeployment can work in practice.

At Eraring Power Station in New South Wales, Origin Energy’s Future Directions program combines personalised training, redeployment pathways, and retirement planning with investment in a large-scale battery on site.

“When we began planning for Eraring’s closure, we knew we needed to take meaningful action to support our employees through this transition. This isn’t just about individuals leaving a business — it’s the phasing out of the entire coal generation sector,” said Bianca Lowe, Origin’s General Manager, People Separation and Transition.

For workers, the support has been tangible. Overhaul Manager Andrew G described receiving “everything from upskilling opportunities to financial and mental health support during this transition.” Workers have the opportunity to strengthen skills and boost employability for the post-closure future. 

In Western Australia, Synergy has offered workers from Muja and Collie coal stations personalised transition plans, redeploying them into advanced electrical engineering and project management roles. EnergyAustralia has invested $10 million in its Power Your Future fund, providing coaching and retraining for staff, with some redeploying into clean energy roles while others transition into entirely new sectors, from health care to advanced trades.

Richards emphasises the broader lesson: “Our research confirms that many engineers are well-positioned to step into clean energy roles.” But she warns Australia risks falling behind: “Compared to Europe and the US, we need stronger national coordination and faster regulatory reform.

Barriers to scale

Despite these programs, systemic barriers remain. Severe shortages of electricians top the list. Forecasts indicate a shortfall of 32,000 electricians by 2030, rising to 117,000 by 2050. Meeting demand will require 55,000 new apprentices by 2027 alone.

Michael Wright, national secretary of the Electrical Trades Union, warned: “We are heading into literally unprecedented skills shortages in the electrical trades... Left unchecked, these skills shortages risk our electrical licensing regime, but are also emerging as a real handbrake on the pace of what we can build.”

Jobs and Skills Australia estimates that 42,000 additional electricians will be required in the next few years, with nearly two million workers needed across building and engineering trades by 2050. Yet TAFE and registered training organisation (RTO) capacity is already stretched, while fragmented licensing frameworks slow mobility between states and projects.

“Competition for skilled engineers is global. We must move faster to avoid falling behind,” Richards added.

Lessons from abroad

Germany’s coal phase-out illustrates what coordinated national frameworks can achieve. It was achieved, according to the country’s Coal Commission, “without a single forced redundancy,” thanks to national transition authorities, pooled redundancy schemes, and parallel investments in regional redevelopment.

Richards notes Australia’s challenge: “Systemic barriers like fragmented policy and inconsistent training pathways are being addressed but not yet at scale.”

It is not a lack of pilot programs or investment, but the absence of integration across jurisdictions and industries.

Collaboration at the frontline

Partnerships between industry, education, and government are emerging, though still fragmented.

Origin Energy has partnered with the Queensland Minerals and Energy Academy (QMEA) to deliver STEM and trade workshops in regional schools. Since 2005, QMEA has expanded to 100 schools, engaged 60,000 students, and will add three new hubs by 2027, building direct pipelines into apprenticeships and tertiary pathways.

Transmission operator Transgrid has embedded scholarships, MOUs, and pre-apprenticeships into major projects, with tailored pathways for women and regional students.

   Source: QMEA                                               

The Clean Energy Council is working with TAFE Gippsland, Federation University, and Energy Skills Queensland to unify national training standards through its skills passport program.

“Industry, educators and governments are collaborating more closely, but we’re not yet building a truly transition-ready pipeline. Place-based solutions, skills recognition, and targeted training remain key gaps we must close to meet future demand,” Richards observed.

Federal signals

The federal government has begun to address these challenges through recent budget measures. Minister Andrew Giles argued in November 2024: “We need to create a pipeline of skilled teachers and high-quality institutions who can train a generation of workers who will need to bring their expertise to bear on technological challenges that we aren’t even aware of yet.”

In May 2024, Skills Minister Brendan O’Connor confirmed “around $600 million in measures in the 2024-25 Budget will bolster skills growth and development in the clean energy, construction, and manufacturing sectors, as well as support apprentices and break down barriers for women in male-dominated industries.”

Of this, $91 million is earmarked specifically for clean energy apprenticeships. The funding signals recognition, but execution will be the test.

Australia’s workforce transition is underway, but scale and coordination lag demand. Experts highlight a need for reform, without which the skills crunch will remain the missing link in Australia’s energy transition — an obstacle as formidable as financing, permitting, or technology deployment.