DAVID MASUREIK: Renewable energy sector holds promise for youth employment

Energy is top of mind for every SA business owner as the country’s load-shedding crisis, which has been affecting trade and industry for years, has gone from being an irritating itch to a life-threatening situation.

As we celebrated Youth Day 2023 it seems unthinkable that since load-shedding began in 2007 we are now raising the first generation of 16-year-olds who have never known life without it.

Alongside this, the renewable energy sector is growing at an exponential rate, fuelled by this crisis and the decreasing cost of equipment and cushioned by the comfort provided by predictable financial models. In turn, this is triggering the shift towards an off-grid economy as organisations wisely seek energy independence through self-generation and the incorporation of renewables.

There is an adage that says every crisis is laden with opportunity, and it seems only fitting that the younger generation derive benefit from this. Yet it is unclear whether that is the case here.

A quick look at the statistics 

As the Eskom fleet continues its declining trend, the workforce in the traditional electricity sector has contracted in tandem. According to Stats SA, the knock-on effect on its employment has been a decline of almost 10% since 2013. In contrast, renewables continue to make headway in the energy generation space, rising from a contribution of 0.5% to total electricity production in 2013 to 2.2% in 2016, 6.1% in 2021 and 7.3% in 2022. 

Yet, according to Stats SA, SA’s youth continue to bear the burden of unemployment, with an unemployment rate higher than the national average. According to the Quarterly Labour Force Survey (QLFS) for the first quarter of 2022, the unemployment rate was 63.9% for those aged 15-24 and 42.1% for those aged 25-34, while the current official national rate stands at 34.5%. 

Though the graduate unemployment rate remains relatively low in SA compared to those of other educational levels, unemployment among the youth continues to be a burden, irrespective of educational attainment. Year on year the unemployment rate among young graduates (aged 15-24) declined from 40.3% to 32.6%, while it increased by 6.9 percentage points to 22.4% for those aged 25-34 in the first quarter of 2022. 

If we are to build a truly transformed society we all need to prioritise closing these gaps, and perhaps the renewable energy sector needs to a work a little harder to increase its attractiveness to the younger generation.

Where are the opportunities? 

While many assume that once solar systems are installed they look after themselves, this could not be more untrue. The operation and maintenance of these systems is key to their efficiency and longevity, and a skyrocketing sector of the industry. In fact in Europe, where the solar industry is two decades ahead of us, development-wise the operations segment outweighs installation revenue in the industry, presenting umpteen employment opportunities such as for solar technicians, maintenance workers, cleaners, engineers and data analysts.

The unions are quick to yell “job losses” in discussions related to renewable energy, but they do so to protect the thousands whose coal power station-based skills are, in many cases, redundant elsewhere. This is a separate issue that needs to be addressed with empathy and a constructive approach.

Is the renewable industry attractive to the youth? 

The UN Children’s Fund recently stated that each generation has different priorities when it comes to finding an employer, and the workforce will undoubtedly soon be dominated by millennials. But how does one make your organisation attractive to them? 

While many of the ways to do this may seem obvious, such as offering elevated opportunities for growth, providing development stipends and offering internship programmes, there are other less-traditional approaches that are highly effective in increasing the appeal of your organisation. These include being active on social media, leveraging LinkedIn opportunities, publishing engaging video content and highlighting the social causes you support.

The importance of these avenues cannot be overstated as today’s youth base their decision-making on distinctly different priorities to those leaned into by older generations.   

Moving forward, stronger 

At the Youth Dialogue on the Just Transition webinar hosted by the department of mineral resources & energy and SA National Energy Development Institute earlier this year, energy industry representatives expressed the firm belief that SA’s transition from fossil fuel dependence to a renewable energy-based economy will add more jobs than will be lost in fossil fuel value chains. However, the skills young people bring to the fore, including by establishing careers and businesses in nascent value chains, is a central element of any just energy transition discussion.

The time to make this happen is now, so that we can build a sustainable energy sector for many years to come.

• Masureik is CEO at New Southern Energy.