Australia’s plan to emerge from the climate transition as a renewable energy super power is at risk amid an electrician shortage that a report warns will reach nearly 100,000 by 2050.

Analysis published this week by think tank Per Capita’s Centre for New Industry reveals a shortage of essential trade workers has hit a crisis point just as massive investments in the grid take off.

Billions are being invested in building renewable projects, but report co-author Sarah McKenzie says decades of inaction on workforce issues means Australia may fail to realise the full benefit.

“Our VET and TAFE systems have been decimated, particularly by former governments,” McKenzie said.

“Even if we did have enough electricians that wanted to start, the training places just don’t exist.”

The problem has become so bad that even Australia’s emissions reduction targets – including a plan to achieve net zero by 2050 – could be set back unless workforce shortages are addressed soon.

Without action to improve workforce shortages Per Capita’s report warns the energy transition will be “bumpy, expensive and delayed”.

McKenzie and co-author Emma Dawson made seven recommendations for fixing the problem, including an overhaul of vocational training.

They want industry to lead an expansion of training organisations in partnership with TAFEs and a taxpayer-backed wage supplement to support qualified tradies to undertake training to become teachers.

“With new renewable energy jobs a lot of people who are trained in those jobs are on the tools,” McKenzie said.

“It’s quite difficult to take the pay cut we’re asking of these people to go into teaching.”

Additionally, they want the federal government to invest in group training organisations that specifically focus on skill needs connected to newly designated renewable energy zones.

Causes of electrician shortage

What many Australians may not know is that there has been a shortage of electricians since 1981, with the occupation listed on the skills priority list for the past three years.

Almost half of all apprentices in electro-technology and telecommunications withdraw before they complete their training, which is significantly curtailing the pipeline of new skilled workers.

Per Capita cited survey data that suggested low pay and cost-of-living pressures are behind the woeful completion rates, with one third of apprentices saying income wasn’t enough to cover basics.

The report identified a shortage of vocational schools teaching trades, particularly in areas of new demand such as renewables.

There are also far too few women entering electrical trades to be sustainable, with more than 90 per cent of workers being male.

Report calls for reform

The report said federal government action is needed to curb the workforce shortages, including lifting the number of trainees and the people who can teach them.

One of the big recommendations is that the federal government develop what’s called a “Group Training Zone” (GTO) and require all renewable energy project zones to get workers through it.

These GTOs basically directly employ apprentices and trainees and then place them with host employers to receive on-the-job training.

“GTOs benefit both apprentices and employers and will play a crucial role in ensuring apprentices are trained in new renewable energy technologies,” the report explained.

“As the direct employer, GTOs organise placements for apprentices across multiple employers and are responsible for ensuring that apprentices gain the full gamut of on-the-job experiences required to complete their apprenticeship.”

Additionally, the report calls on the federal government to back wage subsidy schemes that take qualified electrical trades workers and entice them to do secondments training new workers.

“This should include working with employers to provide electrical workers with time away from work to undertake training to qualify to work as VET teachers and trainers,” the report said.

A full list of the recommendations can be viewed here .