Blog Bio Ressources - Evolution of the labor market in Ukraine: green energy

In 2024, Ukraine stands at a crucial crossroads regarding its energy choices. Since the onset of the “large-scale Russian invasion”, it has become evident that traditional energy sources cannot guarantee total stability, particularly as power plants, “thermal power stations” and critical infrastructure have become the primary targets of Russian bombardments. Consequently, alternative sources of green energy are revitalizing the energy market, while also providing economic advantages, including the creation of new jobs during the construction and maintenance of green energy facilities.

The dynamics of the development of various renewable energy sectors in Ukraine up to 2022

According to the Registry of Power Facilities and Consumer Electrical Installations Utilizing Alternative Energy Sources, as of July 2024, nearly 900 organizations operate over 1,000 power facilities.An analysis by YouControl’s R&D center reveals that a quarter of these companies are affiliated with or belong to 127 financial-industrial groups. In total, 873 legal entities and 21 individual entrepreneurs operate 1,238 power facilities, generating energy from solar, wind, water, and other renewable sources. The highest concentration of registered legal entities is in Kyiv, while individual entrepreneurs are predominantly registered in Zaporizhzhia and Odesa regions (the southeast and south of Ukraine)¹.

While there are no official job statistics available, analysis of the IRENA report « Renewable Energy and Jobs – Annual Review 2021 » and the European Commission’s study « Employment in the Energy Sector » suggests that each megawatt of installed renewable energy capacity creates between 2 and 5 jobs, depending on the technology².

Understanding the context of the Ukrainian labor market in the energy sector is crucial, as the war has had a significant impact on employment opportunities. Companies in the energy sector are facing a shortage of specialists, including dispatchers, electricians, welders, locksmiths, heavy machinery operators, engineers, and energy managers. This shortage is also apparent in the renewable energy sector, where charitable organizations and small enterprises involved in the installation of renewable energy sources – such as biomass, biogas, and solar panels – are expressing concerns about the lack of qualified specialists. Consequently, the market is experiencing an oversupply of opportunities that is not being met by the available workforce.

Context and Motivation for Green Energy

Ukraine is committed to reducing its dependence on fossil fuels and integrating more renewable energy sources into its energy mix. This decision is motivated by environmental and economic considerations, including the need to reduce greenhouse gas emissions and mitigate the impacts of climate change. Additionally, Ukraine seeks to enhance its energy security in the face of geopolitical challenges by decreasing its reliance on energy imports.

On June 25, 2024, the Cabinet of Ministers approved the National Energy and Climate Plan for the period up to 2030, aiming to implement the European Parliament and Council Regulation (EU) No.2018/1999 of December 11, 2018³, regarding the governance of the Energy Union and the mitigation of climate change effects. The National Energy and Climate Plan is intended to align environmental, energy, and economic policies for the sustainable development of Ukraine, including job creation, as directly stated in the management mechanisms established by Regulation No.2018/1999 of December 11, 2018⁴.

Development of Energy Infrastructure

The development of infrastructure is a priority for Ukraine to facilitate the transition to green energy. This includes the construction of wind and solar farms, as well as the enhancement of energy distribution networks. Such projects require a skilled workforce to boost the construction, engineering, and information technology sectors. As noted in a previous article about the transition to Green Energy during Wartime in Ukraine⁵, there is currently a significant momentum for green projects in Ukraine. To fully leverage the energy transition, Ukraine must invest in training and skill development. Educational and vocational systems need to evolve to meet the demands of new green technologies. Partnerships between educational institutions, the government, and companies in the energy sector are essential to develop suitable training programs that prepare workers for the jobs of the future.

Impact on the Labor Market

The transition to renewable energies is significantly changing the landscape of the labor market in Ukraine. As the demand for specific skills in the renewable energy sectors increases, it is clear that there will be substantial job growth in these areas. Positions such as wind energy technicians, solar engineers, and energy efficiency specialists are becoming increasingly sought after. Many companies are now offering specialized training programs to meet these growing needs.

At the request of the author of this article, the State Statistics Service of Ukraine provided statistical information regarding the number of employed workers in economic entities (legal entities and individual entrepreneurs), according to specific codes of the Classification of Economic Activities for 2023 and based on the annual state statistical observation « Structural Changes in the Economy of Ukraine and Its Regions”.

In particular, the number of employed workers in economic entities engaged in the production, transmission, and distribution of electricity for 2023 amounts to 142,747 individuals, of which 142,681 are from enterprises and 66 are individual entrepreneurs.

Unfortunately, due to the military aggression of the Russian Federation against Ukraine since February 2022, the state statistical bodies have not conducted survey sampling of the population (households) resulting in a lack of more precise statistics.

Future Perspectives

As Ukraine continues to commit to the path of energy transition, the prospects for its labor market appear promising. Green energy could become a major economic pillar, creating sustainable and well-paid jobs (especially in the context of post-war reconstruction). The green recovery of Ukraine could create up to 4.2 million green jobs in various sectors, of which the energy sector could provide up to 1.2 million additional green jobs⁶. However, to achieve this goal, Ukraine will need to overcome challenges such as modernizing its energy infrastructure and improving the training of its workforce to meet the demands of this burgeoning industry.

To find more about :