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Knowledge Transition in Energy Sector

The UN global roadmap mandates secure access to clean energy for all by 2030 and net zero emissions by 2050. Also, Article 7 of the SDGs on Affordable and Clean Energy aims to have everyone accessible to energy that is affordable, dependable, sustainable, and modern. With these spearheads from the UN, one can now observe the transformations in the energy line industry that numerous brands have undertaken to promote sustainability, which has led to multiple agencies adopting technology to promote clean energy. However, the business is still primarily driven by the knowledge and abilities of humans. During the change in the energy business, it is apparent that labor remains essential and this is evidenced by the advent of turmoil in the labor markets. TRANSITION IN ENERGY SECTOR

Energy work encompasses the entire value chain, from energy fuel supply (coal, oil, gas, and bioenergy) to the power sector (generation, transmission, distribution, and storage) to energy end applications (vehicle manufacturing and energy efficiency). Apart from that, energy end uses are key, whether automobile manufacturing or energy efficiency as evidenced by the rapid construction of energy infrastructure worldwide. This is especially true in Asia, where the International Energy Agency (IEA) discovered that energy employment accounts for more than half of all jobs. This creates a manufacturing hub and provides access to labor at a lower cost.


As technology plays a role in the transition to clean energy, new technologies demand new skills. A lack of relevant skills can create bottlenecks without proper retraining and supplementary training. Renewable energy sectors do not necessarily differ substantially from those in conventional energy sectors. According to the International Labor Organization (ILO), manufacturing and installation skills may be reduced, but greater demand for maintenance and management skills. Furthermore, CNN reported that the employment rate for fossil fuels jobs declined by 12% in 2021, while the International Renewable Energy Agency (IRENA) predicted that the clean energy employment rate would increase by 122 million energy sector jobs globally by 2050 (of which 43 million will be in renewables). Public-private partnerships (PPPs) will be necessary for investments in a future-oriented labor market. It provides new opportunities for people losing their jobs in traditional energy or training to build employee reskilling, upskilling, or capability enhancement, as well as legislation to assist these businesses. Therefore, market-oriented workforce skills will never be the same again, with prospects for a more skilled workforce to create more jobs, affecting higher productivity wages and economic growth.

Lastly, businesses should strive to be clean energy leaders and train individuals to transform energy. Governments must also provide comprehensive policy frameworks, appropriate incentives, and conducive conditions for repurposing ineffective subsidies for enterprise development. Ultimately, a sustainable future will result from fostering the collaboration of all sectors.


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