Global Study Warns of Growing Engineering Talent Gap in Energy Transition
Key Highlights
· 450,000 to 1.5 million more power engineers will be needed by 2030, more than double today’s workforce
· Up to 40% of global power executives find insufficiently skilled workforce and competition for talent are 2 biggest challenges in filling engineering role
· Electrical energy demand will increase 50+% by 2040
· AI and other emerging disruptive technologies are changing power generation and management
· Industry challenges will grow as digital skills and renewable energy become more critical in other industries
A new study from global management consultancy Kearney, in collaboration with the IEEE Power and Energy Society, finds that the power industry faces a widening shortage of engineers with the skills needed to support the transition from fossil fuels to sustainable energy.
The report, The Future of the Energy Workforce, draws on industry data, surveys of nearly 200 senior executives and engineers, and insights from more than 770 engineering experts across 37 countries. It concludes that the industry does not just need more engineers; it requires professionals with a broader range of technical and multidisciplinary skills.
“Leaders in the global power industry must understand the scope of their looming talent shortfall,” said Andre Begosso, partner in Kearney’s energy, power, and utilities practice. “There are simply not enough engineers with the skills needed to implement the changes required this decade—and the gap is growing.”
Skills Gap and Workforce Challenges
The study identifies a need for engineers skilled in emerging technologies such as generative AI, machine learning, drones, robotics, advanced analytics, and database management. In addition, engineers will require a deeper understanding of economic, sustainability, and social considerations. Current university curricula and training programs are not keeping pace, leaving many engineers underprepared for the demands of a rapidly evolving grid.
At the same time, competition for engineering talent is intensifying. Nearly half of all power engineers surveyed reported changing jobs, leaving their employer, or exiting the industry since 2021, citing burnout, lack of stimulating work, and limited career mobility. Industries like IT and technology, which offer higher pay and perceived prestige, are drawing both senior engineers and new graduates away from the energy sector.
Industry-Wide Action Needed
The report emphasizes that addressing the talent shortage will require coordinated action by utilities, universities, and professional associations. Utilities may need to accelerate adoption of new technologies and expand workforce development programs. Universities are encouraged to broaden engineering curricula to include digital and multidisciplinary competencies. Industry associations could help by offering more diverse and inclusive membership and training opportunities.
“The energy transition is the biggest challenge facing the power industry, but it also presents opportunities for innovation,” Begosso said. “Communicating this mission to prospective engineers—‘We’re solving a massive problem for the planet, and we need your help’—will be critical to attracting the next generation of talent.”