Jobs, Jobs and More Jobs

Renewable energy development creates jobs. Recent figures from the International Renewable Energy Agency shows that. The growing investments on RE in recent years are resulting in more work for many nations.

The report, Renewable Energy and Jobs Annual Review 2017 showed that in 2016, the RE sector provided jobs to as many as 9.8 million individuals. This amount was higher by 1.1% posted in 2015. Leading the pack is solar photovoltaic, employing some 3.1 million people, a number that is up by 12 percent from 2015. Wind energy also saw a jump in the number of people it employed, providing jobs to some 1.2 million people.  The report stressed that wind and solar PV have been consistent in providing more jobs in recent years as work from these two subsectors have more than doubled since 2012.

As government’s in Asian countries take notice of the potential of RE, Asia accounted for the largest contribution to job generation in the sector, accounting for 62% of the total globally. Growth in RE jobs in this continent has been significant with its 12% increase from 2013 to 2016.

Asia has been on the rise with its new installed capacity accounting for 46% of the global growth in 2016 from a mere 40% in 2013. Thanks to China, which the study noted as one of the top countries in producing the most number of jobs along with Brazil, the United States, India, Japan, and Germany. Given China’s pivot to cleaner energy, it now provided some 44% of the total RE jobs worldwide last year. China has been employing more people as it only posted 41% in 2013.

Traditional sources of energy, on the other hand, is suffering a different fate.  Several developments such as growing use of automation in extraction, overcapacity as well as the shift to greener forms of energy of nations are causing the decline of jobs in the sector. Jobs generation from this sector has been declining all over the world for decades.

Developments in China alone are hurting traditional power industry, particularly, coal. China, the producer of almost half of the world’s coal, have already closed 5,600 mines due to the slowdown of its economy and excess supply. It is predicted that some 1.3 million coal mining work will be reduced in the country. Similarly, the world’s largest coal producer, Coal India has already decreased the number of jobs by 36% as the number of its employees are down to 326,000 in 2015-2016 from 511,000 workers in 2002-2003.

Similarly, coal-mining in Germany only employs roughly 30,000 jobs, which is a mere tenth of what it used to hire 30 years ago. The US coal mining work, too have dwindled to 55,000 jobs from 174,000 three decades ago.

And we can expect more of this trend in the coming years. Russia, for one, has recently announced its largest-ever purchase of renewable energy as it aims to award contracts to buy 1.9 gigawatts of clean energy in a bid to attract more jobs through foreign investments.

Director-general of the International Renewable Energy Agency Andan Amin has noted that this move “can significantly contribute to the country’s economic objectives such as economic growth and employment.”

RussiaRussia now joins other power nations that are seeking to invest more in renewables. Just a few months ago, the Organization of Petroleum Exporting Countries, or OPEC’s top producing country, Saudi Arabia announced that it will invest some $30 to $50 billion in renewables starting with the construction of wind and solar power plants.

As I have been saying, there are many benefits of investing in renewables. And job generation is one of them. As some of the world’s most advanced countries shift to greener forms of energy, with the exception of US, (which is a different story, by the way), we can only expect more jobs and a better (and cleaner) future, hopefully for all.

 

References:

Renewable Energy and Jobs Annual Review 2017

https://www.bloomberg.com/news/articles/2017-05-29/russia-starts-largest-renewable-energy-auction-in-bid-for-jobs

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