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Talent Shortage Threatens Renewables Growth

April 15, 2008 | 7 Comments

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London, UK [RenewableEnergyWorld.com] A shortage of human capital, especially experienced business leaders, is presenting an obstacle to further growth of the growing clean energy industry, a new study finds. According to a joint report by New Energy Finance and recruitment firm Heidrick & Struggles that looks into top-level recruitment in the clean energy sector, the issue is rising up the agenda in sectors such as wind and solar energy and biofuels, as investment in specialist businesses climbs.

"There is strong momentum behind the growth of clean energy worldwide, with new investment up nearly fivefold between 2004 and 2007, but this is creating shortages not just of components such as silicon and transport infrastructure such as crane ships for offshore wind, but also of human capital."

-- Michael Liebreich, CEO, New Energy Finance

The central finding of the research is that business leaders regard the recruitment issue facing the sector as a serious challenge. Some 37% of respondents said they saw the recruitment challenge as "very serious," and a further 59% described it as "moderately serious," with only 4% not concerned. Senior managers said that finding executives to drive the growth of their businesses was a key challenge for the next 12-18 months, at least comparable with other concerns such as the availability of projects and assets, capital availability and cost, and government and regulatory support.

The survey results showed that clean energy firms see three high level posts as particularly challenging to fill; Chief Technical Officer, Chief Executive Officer and Senior Project Managers. Overall, firms said that the shortage of senior management was even more serious than the shortage of technical skills and scientific talent.

Another conclusion was that firms are having to look hard outside their sector for top-level recruits. Just 32% of respondents said that most staff came with significant experience in the clean energy sector. Nearly half said most recruits came with experience in the traditional energy sector.

Michael Liebreich, CEO of New Energy Finance, said the research “has shown that very rapid growth in investment in clean energy is putting strain on the availability of senior managers with sector experience. There is strong momentum behind the growth of clean energy worldwide, with new investment up nearly fivefold between 2004 and 2007, but this is creating shortages not just of components such as silicon and transport infrastructure such as crane ships for offshore wind, but also of human capital.”

Bioenergy, Geothermal Energy, Hydropower, Ocean Energy, Solar Energy, Wind Power

7 Reader Comments

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daniel-clemmons-77366

April 16, 2008

I talked to some Power Company people at the Green Coast (green building) Convention. I had to explain plasma gasification and coal gasification to them. Their idea of renewable energy was burning a little switchgrass in the coal power plant. It seems that the average power company employee is much the same as the general public when it comes to renewable energy knowledge.
I have started educating my 9 year old grandaughter about the carbon-oxygen cycle of the earth and why it is out of balance. The next generation is going to have to deal with our mistakes or enjoy the benefits of our forethought. Education is the key to providing a stable and sustainable workforce in any business.

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nathan-nolan-137272

April 16, 2008

I agree 100% with this article. I am the Human Resources Manager at a brand new solar manufacturing plant in Michigan and finding talent is for sure one of our top challenges.

Any one interested should check out our job openings at www.uni-solar.com.

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lucy-evans-132196

April 16, 2008

The shortage of skilled workers is one of the overlooked obstacles to the development of the environmental economy. People talk about finance and policy framework, but a lack of good staff is up there among them. Environmental markets are still a relatively new sector, so there are very few people out there who know their anaerobic digestion from plasma gasification. And because it is growing at such a rate there's no skill set that is not required, from accountants, to public relations, to engineers. Tom Whitehouse, CEO, Carbon International.

Carbon International is an investor communications and public relations company working exclusively in the environmental industries sector. For the purposes of investor communications, Carbon International is regulated and authorised in the UK by the Financial Services Authority.

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deirdre-price-36817

April 16, 2008

I, too, have applied online to several companies for sales positions without any response. I do think there is a need to add certification or degree programs to every university in the country, especially those states that are developing their solar, biomass, geothermal or biofuel areas. I also think that sales, public relations and marketing are also essential skill sets for this new industry and that we non-engineering types are needed just as much as the engineering and technical types.

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hugh-griffin-138045

April 16, 2008

There is a definite lack of vision at work here. I have a strong desire to work in the renewable energy sector and have applied to many different companies. My resume details a strong technical project management background in telecom equipment deployment (including battery backup power systems) along with commercial construction experience. I haven't had so much as a nibble. I am a highly motivated and focused person with directly applicable skills. I would quickly gain industry specific knowledge. I am sure there are many people like me who can easily transition into this sector. All it would take is a bit of thought about how easy it is to transition skillsets. I welcome any comments...
hgriffin@gmail.com

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gary-reese-20914

April 16, 2008

1. Only 25 states even have a renewable energy standard.

2. Training one one state maynot be reconized in another.

3. Many colleges do not even offer courses. The average cost is $600 per course times 6 courses equals $3600,.... IF your close enough to one to atttend.

4. A degree from a college is the only proof accepted. Some of us have more than enough background to makeup for the lack of "wall paper".

Maybe some of you require a degree in order to know how to put batteries in a flashlite, but I don't. Duhhhh! A twenty-first century industry, using nineteenth century standars. Go figure.

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jeff-watt-53766

April 27, 2008

Being in the Solar PV business, I can't tell you how many times I am approached by people asking how to break into the industry. My response is always the same, have you done your homework? There are many talented people that do indeed have transferable skill sets, or even newbies looking to start their career in renewables that don't bother to learn the first thing about the field, and think that firing off their resumes online will do the trick. If you're reading this, you've taken the first step, as this website contains a wealth of info for almost all the renewable energy fields. But do you know about your local utility programs, do you know the technology thoroughly, do you subscribe to the industries magazines, have you joined the industries organization? What about hand delivering your resume, faxing it over (believe it or not, faxed resumes tend to end up on the HR managers desk). Don't just wander into the office in shorts and a tee-shirt to drop off a resume (I've seen it), it sends a terrible message. Have you tried to find a mentor in the industry? Keep at it, persistence will pay off.

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