The Australian Government can play a key role in helping regional communities prepare for the economic changes brought on by the clean energy transition.
As many clean energy jobs will be concentrated in regional renewable energy zones, building the capacity of regional communities to manage development, attract investment for enabling services and infrastructure, and address workforce challenges is essential.
With effective resources and support, local stakeholders can lead efforts to create training programs, support services, and initiatives that ensure a skilled and diverse workforce while fostering sustainable regional development.
In September, The Next Economy provided a submission for the National Energy Workforce Strategy Public Consultation process. In it, we identified a range of insights on increasing inclusivity in the clean energy workforce (read more here), as well as five examples of actions that already are or have to potential to empower regions in clean energy workforce development:
- Coordinate planning and development of clean energy projects, associated infrastructure and other industries within a region. Regional coordination and phased planning can manage workforce demand and support worker mobility. Co-locating new manufacturing and industry precincts within renewable energy zones also have the potential to stabilise clean energy workforce demand and create lasting careers. Developers and industry benefit from these approaches with clear roles, responsibilities, and timelines, along with cost certainty and transparent infrastructure investment programs.
For example: the Victorian Planning Authority (VPA) works with councils, government departments and the community to provide employment, transport, public space and housing planning in the context of an increasing population. The VPA has identified the staged development of housing lots and required infrastructure such as roads and utilities. - Develop place-based training and education initiatives and partnerships: that aggregate skill and expertise demand from across sectors and co-designs and delivers courses with industry in a region.
For example: in the Upper Spencer Gulf, Uni Hub is working with local industries to ensure their needs are connected with training providers and potential students. - Support local businesses to adapt and scale up their operations for greater participation in the sector. In many regional areas where new energy development is proposed, the scale of workers required outstrips the local labour market. In addition, the essential services and infrastructure required to support workforce and population growth are limited or non-existent.
Currently, local content requirements from state governments are aimed to drive regional economic benefits. However, often insufficient existing workforce capacity, the cost to prepare businesses to be ready to tender for clean energy development contracts, and uncertainty around long-term work security all limit the capacity of local businesses to scale their operations and bring on new workers.
For example: TNE’s work with Hay and Carrathool shire councils on climate adaptation and economic transition this year has shown that local businesses are interested in tendering for large renewables projects but lack the capacity and resources to adapt. Uncertainty around work pipelines, contracts, timing, and qualifications prevents businesses from scaling, investing in workforce development, or hiring. Early engagement and ongoing support are crucial for scaling regional workforce development. Accessible, up-to-date local data is needed to improve transparency, workforce planning, and equitable recruitment strategies. - Provide resources for local government and local stakeholders: to carry out the feasibility and business planning activities necessary to develop the case for investment in local services, coordination activities and infrastructure.
For example: in the Cradle Coast Region, developers are working together to address housing shortage as they understand it is a key constraint to renewable energy development. In Gladstone, the economic roadmap process delivered by the local council identified the lack of birthing facilities as a key barrier to retaining workers once they are married and look to start families. Improving access to health services in Gladstone is seen a core strategy to retain the workforce. In NSW, the Murrumbidgee Council has negotiated to improve health services through the community benefit agreement. - Embed additional capacity within local governments: to manage and coordinate regional clean energy related activities. Regional local governments play a key role in coordinating clean energy activities, managing community benefits, and supporting the infrastructure and workforce needs of the energy transition. In Renewable Energy Zones, local governments are dedicating significant resources to these tasks, often diverting attention from regular operations due to limited funding and staff. Many are handling large, complex projects unseen in their region for decades, requiring new expertise to manage the technical, legal, and managerial aspects of energy development.
For example: An NSW Government initiative is providing $250,000 of funding for local governments to carry out planning over the next 3 years is an example of the type of support required; however additional and enduring funding (for the duration of the energy infrastructure development in the region) is necessary to cover the true cost that local governments will bear to manage the energy transformation effectively in their region.
To find out more, read more about our Inclusive Clean Energy Workforce project.