Europe’s renewable energy sector is experiencing unprecedented growth. Countries across Europe strive to meet their commitments towards the European targets and achieve net-zero emissions by 2050, the demand for skilled professionals in renewable energy is increasing constantly and this rapid expansion has created a “war for talent,” where companies must compete fiercely to attract and retain top talent.
Winning this war requires a strategic and forward-thinking approach to recruitment and talent management. This article explains the important points to consider and how we think you can be ahead of your competitors; What are the factors contributing to the talent shortages? What are the skills and roles in top demand? How to win the war for talent?
Growing Demand for Talent and Factors Driving a Shortage in the Renewable Energy Sector.
The renewable energy sector in Europe is a central pillar of the continent’s strategy to combat climate change and transition to a green economy. Key technologies like wind, solar, energy storage and hydrogen are rapidly expanding. For example, offshore wind capacity is expected to grow from 28 GW in 2020 to 111 GW by 2030 in the EU alone. Meanwhile, the solar energy sector is also experiencing double-digit growth.
This rapid expansion has created an urgent need for skilled professionals across various disciplines, from engineering and project management to data analytics, policy development or energy management. According to a study by the International Renewable Energy Agency (IRENA), Europe will need around 2 million additional professionals in renewable energy by 2030. However, the supply of qualified candidates has not matched pace with demand, creating a fierce competition for top talent.
Several factors are contributing to the talent shortage in Europe’s renewable energy sector:
- Technological Advancements. As the landscape of renewable energy technologies continues to evolve, there is a growing demand for specialized skill sets. For example, the advancement of green hydrogen, sophisticated battery storage solutions, and intelligent grid technologies necessitates proficiency in fields such as chemical engineering, electrical engineering, and data science. These nascent technologies frequently call for specialized skills that are currently not as prevalent in the workforce.
- Cross-Sector Competition. The renewable energy sector is not only vying for talent against traditional energy industries but also with other high-tech sectors such as information technology, artificial intelligence, and fintech. A significant portion of the skills required in renewable energy, including data analysis, machine learning, and software development, are also in high demand across these sectors, intensifying the competition for recruitment.
- Geographic Disparities. While the demand for renewable energy professionals is high across Europe, the availability of talent varies by region, the different skills required differ and change as the industry evolves in the market space. Some countries, like Germany and Den.mark, have well-established renewable energy industries and a pool of local talent that may cover the industry skills required. In contrast, other countries are still developing their renewable sectors, and may struggle to find skilled workers locally, leading to a reliance on international recruitment.
- Inadequate Training and Education Programs. Despite the increasing demand for professionals in renewable energy, many educational institutions have been slow to update their curricula to incorporate the necessary skills for the sector. There’s a shortage of specialized vocational programs and university degrees that focus on renewable energy technologies, project management, and policy, creating a gap between the skills demanded by the industry and the talent being produced by the education system.
- Limited Career Awareness. Numerous potential candidates, particularly younger professionals and graduates may not have a comprehensive understanding of the career opportunities within the renewable energy sector. The industry is occasionally perceived as less glamorous or innovative in comparison to the technology or finance sectors, despite its vital role in combating climate change. This limited awareness leads to a decrease in the influx of professionals entering the field and adds to the shortage of talent.
Skills and roles in High Demand
To win the war for talent in Europe’s renewable energy sector, companies must first understand the skills that are most in demand. While technical expertise is critical, the sector also requires a range of soft skills and interdisciplinary knowledge.
- Engineering and Technical Skills. Engineers remain the backbone of the renewable energy industry. Electrical engineers, mechanical engineers, and civil engineers are all essential for designing, building, and maintaining renewable energy infrastructure. Specializations like wind turbine design, solar panel installation, and energy storage systems amongst others are particularly sought after
- Data and Digital Skills.With the rise of smart grids and digital energy management systems, data analysis and digital skills are increasingly important. Professionals who can analyse large datasets, optimize energy production, and integrate renewable sources into the grid are in high demand. Expertise in software development, machine learning, and artificial intelligence is also valuable.
- Project Management/Developmen. As renewable energy projects become larger and more complex, project managers who can oversee these initiatives from origination to completion are critical. These professionals need to understand both the technical aspects of renewable energy and the financial and regulatory frameworks that govern the industry.
- Policy and Regulatory Expertise Governments across Europe are enacting new policies and regulations to support the growth of renewable energy. Professionals with a deep understanding of these regulations, and who can navigate the political landscape, are essential for ensuring compliance and securing funding for new projects.
- Interdisciplinary and Soft Skills. Renewable energy projects often involve collaboration between multiple stakeholders, including governments, private companies, and local communities. Professionals with strong communication, negotiation, and leadership skills are crucial for managing these relationships and ensuring successful project outcomes.
How to Win the War for Talent
With the demand for skilled professionals outpacing supply, renewable energy companies must adopt innovative strategies to attract and retain top talent. Here are some actionable steps to gain a competitive edge:
- Build a Strong Employer Brand Companies that have a strong employer brand tend to be more appealing to top candidates. In order to create an attractive brand, it is important to emphasize your company’s dedication to sustainability, innovation, and employee development. You can achieve this by showcasing your projects, highlighting the positive impact your company is making on the environment, and sharing your company’s vision for the future. Having a clear and inspiring mission can be particularly effective in attracting professionals who are passionate about making a meaningful difference in their work.
- Offer Competitive Compensation and Benefits. While salary should not be the only factor that candidates consider, it plays a significant role in attracting talent. Renewable energy companies should offer competitive compensation packages that include not only a competitive salary but also benefits such as flexible working conditions, opportunities for career development, and financial incentives such as performance bonuses or LTIPs.
- Invest in Talent Development and Upskilling. In the rapidly evolving renewable energy sector, it is crucial for companies to prioritize continuous learning and development. To achieve this, companies should offer comprehensive training programs, workshops, and mentorship opportunities to ensure that employees are able to stay ahead of industry trends. Additionally, providing a clear and structured path for career advancement can significantly contribute to retaining talent and reducing turnover within the organization.
- Embrace Diversity and Inclusion. A diverse workforce is beneficial as it brings fresh perspectives and drives innovation. Fostering a culture of inclusion allows companies to appeal to a wider talent pool. In addition to gender diversity, it is important for companies to recruit professionals from various backgrounds, nationalities, and industries.
- Leverage External Recruitment Partners. Search firms that specialize in renewable energy can be invaluable partners in the war for talent and they can be your secret weapon to ensure you are ahead your competitors. These specialists have deep networks of candidates with the specific skills required for renewable energy projects and can support companies identify and secure top talent more quickly and efficiently but also enhance your hiring process.
Conclusion
The war for talent in Europe’s renewable energy sector is intensifying as the industry continues to evolve at a rapid pace. Winning this battle requires a strategic approach that goes beyond offering competitive salaries. By building a strong employer brand, investing in talent development, embracing diversity, refining your hiring processes, and partnering with specialised renewable energy search firms, companies can secure the skilled professionals they need to lead the energy transition.
Reach out today to discover how our expertise in renewable energy search can help you build a Leadership team that drives your company toward long-term sustainable success.