Insights

Australia is transitioning away from coal-fired energy towards renewable sources. According to the Australian Energy Market Operator (AEMO) in their latest update to their Integrated System Plan (ISP) released in June 2024, this energy shift is expected to generate $122 billion in annualised capital investments through to 2050. For business leaders, understanding and capitalising on this transition is crucial for both environmental responsibility and business strategy.

The Urgency and Opportunity of Australia's Energy Transition

While we are on track for all coal-fired power stations in Australia to close by 2040, the timely deployment of renewable energy infrastructure remains a challenge. To accelerate the pace of change, the Federal Government has set an ambitious goal of 82% renewable energy by 2030, from which we’re sitting at around 40% today.  Wind power is leading the way, with Victoria boasting some of the most favourable offshore wind zones globally.  The economic opportunity is massive, take Gippsland as an example. When the planned 9GW of offshore wind generation capacity is built by 2040, the region can potentially benefit from $ 36.9 billion in capital investment[i].

Workforce Skills Uplift at Scale and Speed is Required

For business leaders, the energy transition process poses strategic challenges in both planning and execution. It is not only about installing new technologies but also about creating an ecosystem with a suitably skilled workforce where learning and innovation thrives.  Preliminary modelling from Jobs and Skills Australia suggests that we will need close to two million workers in building and engineering trades by 2050, an increase of around 40%[ii],  with many of these workers required to support the growth in the energy market. Business leaders must ask: “What got us here, won’t get us there - how can we develop a skilled new workforce at the scale and speed required?”

Innovation in how we re- and upskill our workforce is vital. While investments in training programs are underway, continuously improving ways to collaborate with industry is essential to ensure that workers are trained in skills that will be in demand. Global energy equipment manufacturers like General Electric, Andritz and Voith are already providing targeted training for their proprietary technologies. In the tech industry, vendor certifications offered by the likes of Microsoft and Salesforce have proven successful in fast-tracking individuals into high-demand, high-salary jobs. A similar model could emerge in the clean energy and transmission space, where organisations work directly with equipment manufacturers, developers or gentailers to certify workers quickly and efficiently.

Leverage Technology, especially AI, for Competitive Advantage

Technological innovation, particularly AI and automation, will be key to optimising Australia’s clean energy future. AI-driven tools will streamline processes, reduce costs, and enhance operational efficiency, opening new opportunities for those willing to embrace change. For example, AI is already being used to optimise wind farm placements by analysing environmental data, boosting energy output. Forward-thinking companies are using these tools to stay ahead, transforming traditional workflows, creating new capabilities and differentiated offerings. Our education and training providers also need to “train the trainer” so that our educators are digitally skilled and equipped with the latest technologies to deliver new curriculum just-in-time, in blended and innovative ways, collaborating across organisational boundaries and geographies, supporting their industry partners.

Calls to Action

1. Understand the market

Like any industry in transition, taking the time to research and understand the market, such as the key drivers for change, the size of the addressable market, the risks, constraints, challenges and opportunities, will be crucial to making sound business investment decisions.

2. Invest in relationships and tools to management them effectively

Success in this new landscape hinges on comprehending the intricate web of existing and new stakeholders driving the change. Identify and develop relationships with key players across the ecosystem and invest in systems that help you do it efficiently and intelligently.

3. Build specialisation in key technologies or capabilities

The clean energy and transmission market is vast and rapidly developing. Rather than trying to be all things to everyone, identify specific areas where your organisation can excel and differentiate. Be really clear on what you will and will not do.

4. Reassess your business model and value proposition

Based on your specialisations, articulate a compelling value proposition and develop a suitable business model that leverages new digital capabilities. How does your expertise address the needs of the stakeholders you are engaging with? Your differentiated offering should align with the relationships you are cultivating and their specific challenges in the energy transition market.

Seizing the Opportunity

Australia’s energy transition is not just an environmental necessity—it’s a business imperative. At Capability, we are poised to guide you through this massive opportunity. Whether you are looking to build new capabilities in AI, pivot your workforce, or develop a long-term clean energy strategy, our expertise will equip your organisation thrive. The future of Australia's energy is clean—are you ready to power it?

Acknowledgements

The primary source of content for this article was from experts in the Capability Network.  AI tools were used to synthesise and accelerate document production.

About Capability

For over 25 years, Capability has been helping many of Australia’s leading organisations grow, digitalise, and optimise their business through execution capability. As a boutique management consultancy, we differentiate our services through thoughtful balancing of strategy and governance advice with decades of pragmatic implementation experience.  Our leaders are distinguished by their repeated success through multiple organisations, and all have previously held leadership roles in both professional services and industry. 

About the Authors

[i] https://www.pwc.com.au/energy-transition/australias-pathway-to-energy-transition-is-blowing-in-the-wind.html

[ii] https://www.jobsandskills.gov.au/sites/default/files/2023-10/The%20Clean%20Energy%20Generation_0.pdf