Talent Paradox in the Energy Transition Era: Navigating Workforce Evolution

Global Impetus for Energy Transition

Modern economies have advanced for two centuries through the historic reliance on fossil fuel exploitation and its unintended consequences. From being an issue of scientific obscurity in the 1970s, climate change has since formally emerged on the agenda of all nations as evidenced by the momentous 2015 Paris Climate Accords. To pave the way for a sustainable future, there is increased international consensus on adopting green energy to achieve net-zero emissions via energy efficiency, electrification and decarbonization. 

Today, we are challenged with implementing the biggest energy transition in the history of humankind under a ticking climate clock. The race for new generation of power is on.

India as the Leader in Green Energy

While coal and oil have so far served as bedrocks of the world’s industrial growth, India is spearheading a new type of economic development, potentially escaping carbon-intensive processes historically pursued by many countries. 

The World Economic Forum ranked India 67 globally on its 2023 Energy Transition Index and said it is the only major economy with energy transition momentum accelerating across all dimensions.¹  

India's commitment to generating 50 percent of its electricity from renewables by 2030 and becoming energy independent by 2047, to achieve net-zero emissions by 2070 is ground-breaking. Despite being the third-highest global CO2 emitter, India's per-person emissions are low. 

To meet its ambitious “Panchamrit” 2030 targets, set at UNFCCC COP26, including 500 GW of renewable energy, a 45% reduction in emissions intensity, and cutting a billion tonnes of CO2, the country is rapidly transitioning to low-carbon sources. Having already surpassed its COP 21 commitment of generating 40% electric power capacity from non-fossil fuels by 2030², India has bourgeoned as a front runner in the global race for clean energy transition. 

India is among the few countries that supports the global EV30@30 campaign, which aims for at least 30% of new vehicle sales to be electric by 2030.³ India’s intention to de-couple its economic growth from greenhouse gas emissions is reflected in the Union Budget 2024–25, where the government has allocated INR 19,100 crores for the Ministry of New and Renewable Energy. 

Key private players driving India's energy transition include: 

• Reliance Industries Limited committed to achieve net-zero carbon emissions by 2035. 
• Adani Green Energy Limited commited to upscale its Renewable Energy Target from 45 GW to 50 GW by 2030. 
• Tata Power Renewable Energy Limited committed to achieve no net loss to biodiversity by 2030 throughout its renewable sites.⁴

Growth of Green Jobs

According to the International Labour Organisation, green economy could create 24 million jobs globally by 2030.⁵ India is set to create 3.4 million renewable energy jobs by 2030 to reach its 500 GW target.⁶

Talent Challenges in the Energy Transition Era

01. Skill Gap 

Shortage of subject matter expertise in areas such as solar, wind and smart grid systems. 

02. Fierce Competition for Skilled Talent 

Renewable sector vies for the same pool of professionals sought by other legacy industries. 

03. Remote Location of Renewable Energy Projects 

A deterrent for employees seeking urban lifestyle. 

04. Few Specialized Academic Programs 

Creates a bottleneck, choking talent pipeline. 

05. Low Talent Retention 

Demanding nature of project-based and tech-advanced roles contribute to burnout and dissatisfaction in the backdrop of unclear career development opportunities and structured training programs. 

06. High Attrition 

Talent outflow to other sectors driven by superior career advancement opportunities and better compensation. 

07. Undermining Job Security 

Regulatory uncertainties, frequent policy changes and funding challenges make the renewable sector less appealing. 

08. Cultural and Organizational Barriers 

Insufficient diversity and traditional mindset impede efforts to attract and retain a dynamic workforce.

The conundrum remains that, despite the need for a green workforce and a surplus of job seekers, businesses are experiencing a shortage of highly skilled talent in this sector.

Evolving Talent Landscape

EMA Partners observes rapid evolution in talent requirements for the energy transition as the world embraces clean and sustainable energy sources. 

Key trends include a spike in demand for: 

• Renewable Energy Experts in solar, wind and hydro technologies with skills in designing, installing and maintaining renewable energy systems. 
• Smart Grid and Energy Storage Specialists with critical expertise in battery technologies and grid management. 
• Electrification Specialists in transportation and industrial processes including electric vehicles, grids and industrial systems. 
• Environmental and Sustainability Professionals well versed in environmental regulations, sustainability reporting and strategies to reduce the environmental impact of energy systems and manufacturing processes. 
• Policy and Regulatory Experts with in-depth knowledge of energy policy, regulatory frameworks, compliance and capability to navigate complex policy landscapes, advocating for sustainable practices. 
• Innovation and R&D Specialists playing a leadership role in advancing clean energy technologies, enhancing efficiency and addressing challenges in the transition process. 
• Supply Chain and Circular Economy Experts to practice waste reduction and promote resource efficiency.

As the fifth-largest economy, India is pivotal to the global energy transition. By fostering innovation, implementing effective policies and building a green workforce, India can lead the shift from fossil fuels to sustainable alternatives. This transition balances economic growth with environmental stewardship, demanding skilled talent and international collaboration for a sustainable future. India's Energy Transition Ecosystem is already attracting talent globally from Northern European nations such as Denmark, Sweden, Norway and Germany; North American countries of US and Canada; Asia-Pacific countries, namely China, Japan, South Korea and Australia.

Sources: 

¹World Economic Forum, Accenture. (2023). Fostering Effective Energy Transition 2023 Edition: Insight Report. 

²Ministry of Environment, Forest and Climate Change, GoI. (2023). 

³Ministry of Electronics & Information Technology, GoI. (2021). 

⁴Annual Reports (2024). 

⁵ILO. (2018). World Employment Social Outlook 2018: Greening with Jobs. 

⁶Council on Energy, Environment and Water, Natural Resources Defense Council, and Skill Council for Green Jobs. (2022). India’s expanding clean Energy workforce: Opportunities in the solar and wind energy sectors.

About EMA Partners

Since 1988, EMA Partners has been serving local and international businesses across all industry sectors. The firm has been instrumental in helping its clients recruit thousands of leaders who have made a deep impact in their organizations and society at large. EMA Partners is also a provider of leadership assessment and other advisory services to our clients. Our expertise lies in assessing, hiring and developing leaders at the Board, C-Suite and Senior Executive level across industries. Our clients include global corporations, local companies and not for profit organisations.