(Encadrant : Andréa Michiorri)
Background
Power generation labour content. Renewable power plants need more people for their construction, operation and maintenance than traditional power plants. There are different reasons for this, such as the lower energy density of renewable energy that requires larger conversion infrastructures and the lower maturity of the renewable technologies in respect to thermal power plants. For example [1] compares the labour content of electricity generation by energy source for fossil and renewable power plants. It shows that renewables have all a higher employment potential than fossil and nuclear resources with the notable exception of coal, which has the highest labour content per unit of energy produced because of mining, and hydro, which has the lowest content.
Jobs creation by GWh of electricity produced by technology, activity and origin (EU/non-EU), from [1].
Technological revolutions and the job market. From the legend of the emperor Tiberius killing an artisan guilty to have invented an infrangible glass menacing the stability of his reign, to the luddites destroying steam engines to the recent concerns of job losses caused by AI enabled automation, the impact of technological evolution on the job market is known since ancient times. Renewables represent a technological change as we have seen many in the energy industry and elsewhere. Since WWII for example almost ubiquitous hydro plants have been flanked by coal, then oil (now severely reduced), nuclear and finally gas turbines and combined cycle gas turbines power plants. Wind, and more recently PV, are simply a more recent page in the story.
Managing the transition. It is true that the labour content of generation technologies could be used to optimise both the energy and the labour policy of a country. But as energy experts, it is difficult to advocate for the dismantling of nuclear, gas or hydro plants and replace them with wind and PV just to create more jobs. Also, the labour policy of a country must be more comprehensive and shouldn’t be tailored for a specific sector needs. Regarding renewables, it is important to consider that higher labour content will increase the demand for education and training. This will allow retraining profiles currently occupied with conventional resources and form the missing workforce that will be added to the energy sector.
What experts say: ILO, the International Labour Organisation, suggests in a note [2] that “The positive job creation effect of renewable energy is a result of longer and more diverse supply chains, higher labour intensity, and increased net profit margins”. And also “Of course, as the demand for energy from renewable sources increases, it is expected that there will be a decrease in demand for oil, coal, and gas. However, recent studies show that renewable energy projects can offset job losses from a decline in extractive industries and can, in turn, create a net employment gain”. On the same line the OECD, the Organisation for Economic Development, states in [3] that “Well-functioning labour markets are important to achieve a smooth transition and reintegrate workers who lose their jobs”. It also notes how electricity generation is the sector with the highest responsibility in CO~2~ emissions but has also a negligible impact on total occupation. This means that changes in this sector can be easily absorbed by the general labour market. Finally, a complete and up to date review on the labour content of renewable technologies can be found in the IRENA Annual Report [4].
What is asked to the students
From these considerations and the documents below, the students must:
Research the literature on the topic
Develop a database of cost and employment creation and retention by different power generation technology
Create a model able to answer the question “Do renewables destroy jobs?”. Possibly not only with a simple Yes/No answer, but a more articulate analysis of different niches and regions.
References
[1] Fragkos, Panagiotis & Paroussos, Leonidas. (2018). Job creation related to Renewables. 10.13140/RG.2.2.26601.13926.
[2] A Klemmer, Green jobs and renewable energy: low carbon, high employment,
[3] Employment Implications of Green Growth: Linking jobs, growth, and green policies OECD REPORT FOR THE G7 ENVIRONMENT MINISTERS June 2017
[4] IRENA, Renewable Energy and Jobs, Annual Review 2019