Wind power – the skills challenge

Dr Gordon Edge

Director of Policy

RenewableUK

A word on who we are…

Wind capacity – strong recent growth

Working for a Green Britain

Employment and skills in the UK wind and marine energy industries

• Published: Feb 2011

• Making the case for added value from the industry in terms of employment – that accompanies the environmental and security of supply benefits

• Available online:

www.renewable-uk.com

Key Questions – and Research Approach

• Number of Full Time Equivalent Employees directly in UK onshore, offshore, small wind & marine energy?

• How has the workforce developed since 2007? (Bain & Co) • What are the skills challenges faced?

How was the research conducted? • Institute of Employment Research & Cambridge Econometrics: • Literature review to develop methodology • Telephone interviews with 253 members• Questions on industry spend to cross reference employment figures• Modelling to estimate total employment (~500 ‘direct’ companies

active in the UK) • Analysis provided by RenewableUK & Consultants

Key Findings

• 10,800 FTEs directly in wind and marine energy : 2010

• 91% increase in large wind related direct FTE count since 2007 (4,800 9,200 FTEs)

• We moved from 2.2GW installed capacity to ~4.2GW in same three year period – but other factors have also driven employment

A tale of two sectors

• The skills challenges facing onshore and offshore wind development in the UK are very different– Both now and in the future

Onshore wind – Develop and Operate

• Onshore Wind:– 2007: 4,064 FTEs

– 2010: 6,100 direct FTEs

– 48% increase relative to 2007

Future Scenarios – Onshore

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2010 Base Case Added Value Dynamic Growth

UK content onshore

• UK will take only a small share in the capital value of onshore wind

Scenario UK market share of: 2009 Assumption 2020 Assumption

A (low) UK 5% 5%

EU 1% 0.5%

B (medium) UK 5% 10%

EU 1% 1%

C (high) UK 5% 12%

EU 1% 5%

2020 European Market (-UK) = 196,000 MW installed

Onshore challenge

• Increase in build rate of onshore wind will require some more installation staff– From ~1,000 today to perhaps 2,000

– Not hugely challenging

• Rapid increase in cumulative capacity will strongly drive need for skilled maintenance technicians– From ~1,200 today to perhaps 5,000

– Will require large intake of apprentices, new entrants with transferable skills

• Low share of manufacturing leads to low need for recruits

Offshore wind – Manufacture and Export

• Offshore Wind– 2007: 731 direct FTEs

– 2010: 3,100 direct FTEs

– Employment has more than quadrupled relative to 2007

Future Scenarios – Offshore

0

5000

10000

15000

20000

25000

30000

35000

2010 Base Case Added Value Dynamic

UK content offshore

• UK takes significant share of offshore capital value in both UK and EU

Scenario UK market share of: 2009 Assumption 2020 Assumption

A (low) UK 5% 10%

EU 3% 6%

B (medium) UK 5% 40%

EU 3% 25%

C (high) UK 5% 50%

EU 3% 30%

2020 European Market (-UK) = 30299 MW

Offshore challenge

• Rapid increase in build rate of offshore wind will require many more installation staff– From ~1,200 today to perhaps 6,000– Very specialised skill set, competition from oil and gas

• Extremely rapid increase in cumulative capacity will strongly drive need for skilled maintenance technicians– From ~600 today to perhaps 10,000– Will require huge intake of apprentices, new entrants with transferable

skills– Very specialised skill set, competition from oil and gas

• High share of manufacturing leads to massive need for recruits– From virtually zero to ????

Factories – Healthy Industry

• ~ 5 turbine plants• ~ 5 foundation

plants• ~12 cable

factories• £1bn CapEx• Decisions need to

be taken between 2011 and 2013

• Perhaps 10,000 direct jobs, many more in supply chain

Cable factory requirements are extended from 2022’s figure onwards

What has been achieved to resolve skills & employment related issues in the UK?

Best practice:

Individual initiatives:

Companies, training providers, universities across the UK are developing innovative and successful solutions

Collective initiatives:

Organisations coming together to define issues and develop successful solutions to these

What more can be done?

• Seeking best practice examples from European counterparts– But also keen to share our experience

• Exchange forum on ideas• Focus:

- Transfer training- Higher Education- Vocational Training

Useful Contacts:

• Dr Gordon EdgeDirector of Policyg.edge@renewable-uk.com

• Fruzsina KemenesSkills & Education Policy Officerf.kemenes@renewable-uk.com

• Chris StreatfeildDirector of Health & Safety c.streatfeild@renewable-uk.com