Last week, thousands from across the UK’s energy industry met in Glasgow for the All-Energy UK Conference. CGD research linking training and migration for the green transition has shown the need to break down the silos between skills, employer needs, climate policy, migration policy, and industry.
So, what did we learn from the UK’s largest energy conference?
Bad weather: global headwinds and gales
The Mission for Clean Power 2030—the UK’s goal for 95 percent of its energy to be from low carbon sources by 2030—is underway and focused on implementation. However, throughout the sessions, panelists acknowledged that achieving this, given the difficult global environment (called a “global gale” by Mission 2030 head Chris Stark) is no mean feat.
Higher supply chain costs globally, caused in part by complex components, inflation, and increasing raw material and labour costs, have hit implementers hard. Financial stress felt by multinational companies in the US due to the pausing of the Inflation Reduction Act (IRA), was also impacting their investment in the UK. Companies reported that their investors are more money (rather than environment) focused, which causes difficulty getting projects off the ground. Perhaps that’s why Ørsted, a Danish energy company, recently cancelled Hornsea 4—which would have been one of the largest offshore wind farms in the world.
Looking ahead, all eyes will be on Allocation Round 7 later this year to change the outlook (part of the Contracts for Difference Scheme, a government mechanism for supporting low-carbon electricity generation) with hopes for a strong auction round, to signal increased investment in UK clean power.
The transition needs an industrial strategy
It was important for industry speakers to put the green transition into perspective: transformation on this scale has never happened before, and many different panelists referred to it as a new industrial revolution.
The government’s industrial strategy is due out this year, with expectations that it will be ambitious in scope. The strategy faced many demands from attendees, ranging from promoting the benefits of the transition—energy security, jobs—to identifying where the UK can be competitive in the global market. There were repeated calls from industry representatives for the industrial strategy to look beyond 2030, when it is expected Britain’s energy needs will double, and increased infrastructure such as ports will be critical.
Industry needs more certainty
“Workforce deployment”—having enough skilled workers to deliver on Mission 2030—was consistently cited as an issue. Currently, there are just not enough people to staff the projects needed. Across the conference, industry speakers called for greater clarity from the government on the delivery pipeline, in order to better invest in skills and workforce planning.
To achieve this, the upcoming industrial strategy will need to be very specific (down to project level) across the UK. However, industry representatives were calling for clarity beyond Mission 2030; there was hesitancy to invest in training for jobs that might not exist beyond 2030, or invest in training for workers that might be poached by competitors. To counteract this risk, there were calls to grow the total pool of talent, with collaboration across the sector, and for industry to be more ambitious and invest in the future workforce.
International workers are needed, now
Across the sessions, industry representatives were unequivocal on the need to bring overseas workers into the UK. To deliver on Mission 2030, even with increased investment in domestic upskilling, retraining, and apprenticeships, there is a workforce gap. Visa costs and “frustrating” visa processes were highlighted as prohibitive for companies to grow in the UK, and the Government was called upon to bring down visa costs and for more flexibility in allowing skilled workers into the UK.
The recent immigration white paper was another talking point, with concerns voiced that the need for migrants to have a minimum RQF Level 6 qualification (degree level) will be challenging for employers. As it stands, this requirement will particularly impact electricians and construction workers who generally sit at RQF Level 3. The government will need to closely engage with industry to develop its Temporary Shortage List and ensure occupations critical to the green transition are included.
The All-Energy UK Conference was a great way to engage with industry, and hear their short and mid-term priorities, and in particular where immigration policy can support them. We will be continuing to engage with industry on the need for green-skilled migration, get in touch to learn more: [email protected].
