Renewable Energies And Jobs
From Policy Advice
An IRENA pilot project shows that large-scale renewable energy electricity and biofuels for transport industries involve a large variety of jobs, which differ in skill levels required, and may also differ according to the supply chain of technologies. Although data information is incomplete, 2010 estimates placed gross employment at over 3.5 million (REN21). Of these jobs, 630,000 were related to the wind industry; 350,000 to the solar PV industry; and as much as 1.5 million to biofuels. The majority of jobs are currently located in a small number of major economies – China, Brazil, Germany, India and the United States. Some countries have significant employment across a wide range of renewable energy technologies, whereas in others employment is clustered around a particular technology, such as wind power in Denmark or ethanol in Brazil.
For fuel-free renewable energy technologies, the g...
For fuel-free renewable energy technologies, the greatest number of jobs is generally concentrated in the installation, manufacturing, and administration phase, while for fuel-based technologies feedstock production and distribution of biofuels account for the largest share. Even though labour productivity evolves through time, studies have shown that renewable energy technologies are currently more labour-intensive than fossil fuel technologies, with solar PV technology accounting for the highest number of job-years per GWh over the lifetime of the facility.
Projections indicate that there is considerable future potential for gross job creation in renewable energy. While the extent of employment effects may be debated, most studies suggest that renewable deployment can be associated with net job creation. However, the number of jobs will depend on a range of factors. Key among these are: success of deployment; industrial and labour policy; ability to take advantage of export markets; and the multiplier effects of deployment on the rest of the economy.
If job creation is to be one of the central motivations for developing and deploying renewable energy, government should account for the associated opportunity costs and balance them against the anticipated benefits. Policies to promote job creation should be formulated with reference to a country’s specific circumstances. Experience suggests that employment benefits are more likely to be maximised where there are active labour market interventions to support acquisition of necessary skills. Further increases in jobs can be realised through the development of a manufacturing industry, which would call for further intervention.
The analysis of the current state of play, future potential and policy frameworks suggests that job creation is one of the reasons that speak in favour of renewable energy. However, sustainable job creation depends on stable and predictable deployment policies and training and education in renewables is crucial.
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