BRICS Energy Transition

Skills Report 2023

These figures reveal, that on the one hand, the energy balance of BRICS is still based on the fossil energy sources (and), but on the other hand all the five countries support the achievement of the SDGs, and actively pursue economic transformation as part of their energy transition.

The trend towards just energy transition is affecting the energy balances of the BRICS countries. Its structure changes mainly through increase of renewables, nuclear power and phasing down of fossil fuels. Changes that occur with the process of just energy transition most certainly have an impact on the labour market in all five countries.

In addition, according to the ILO study, most countries’ efforts in energy transition and climate change adaptation are conducted through training of human resources and creation of jobs for professionals, directly engaged in these processes. As labour market evolves, influenced by the energy transition, BRICS countries are facing the emergence of job demand for respective specializations.

The International Renewable Energy Agency (IRENA) predicts that the renewable energy sector alone will create more than 25 million new jobs in the labour market by 2030

At the same time, most of the existing professions are likely to be transformed, while some would disappear or be replaced. This would require maximum efforts on part of BRICS countries to ensure that negative socio- economic consequences are avoided.

The five BRICS members have different energy balances, as well as levels of access and availability of energy resources. Some are net exporters of energy resources, and some are net importers. In this regard, the need for training of specialists for the energy sector differs from country to country, depending on national specifications. At the same time, the study has shown that BRICS countries have a large number of similar challenges and difficulties in the areas of labour market development and training for the energy transition, which open up the potential for increased cooperation in respective area.

The statistical data presented in the national parts of the study, as well as the survey involving more than 100 key energy companies and higher education institutions from the BRICS, confirm the fact that almost all the five countries face the problem of increased employees’ average age. Considering the trends of population aging, as well as the fact that the energy industry mostly requires highly qualified specialists (this demand would only increase as the countries dive into the energy transition), in the near future all BRICS countries may face increased competition for professionals in the labour market, primarily within the IT sector.

Despite the fact that average salaries in the fuel and energy sector are generally higher than in other sectors of the economy (and that was once again proven by the survey), BRICS countries should consider making anticipatory efforts to increase the attractiveness of the industry for young professionals. This can be achieved through the deployment of career guidance activities, increase of social standards and introduction of human-centred principles into companies’ operations.

Comparison of average wages in the companies of fuel and energy sector and average salary in the region of deployment.

To address the challenge of experience transfer from older to younger generations, BRICS companies actively use the mentoring mechanism, applying both group training and one- on-one mentoring methods (when a more experienced specialist works directly with the apprentice). In most companies, this mechanism has been in place for decades and has proven its effectiveness. When it comes to energy transition and the labour market, the second problem for the countries of the bloc is the shortage of specialists of the required qualification. The overwhelming majority of surveyed companies (about 90%) noted that they were in search of energy specialists, and that such specialists are in short supply. Among these are renewable energy experts, specialists in digital (automated) management of power facilities and specialist in the field of cybersecurity of power facilities.

The transition to sustainable resources and achieving net-zero carbon emissions is a global imperative to address climate change and ensure a sustainable future for generations to come. To effectively and continually perform in this endeavour, it is essential to develop specialized expertise in various fields that support the transformation of energy systems. The list above comprises critical specializations that are instrumental in this sustainable energy transition. The following are a compiled list of special fields which would be essential to ensure effective and continuing performance of sustainable resources and reaching net zero carbon emissions:

• Specialists in the field of digital (automated) control of power facilities
  
• Specialists in cybersecurity of power facilities
  
• Specialists in the construction highly automated networks
  
• Specialists in information modeling
  
• IT-specialists with energy specialization
  
• Robotic systems engineers
  
• Specialists in nuclear power plants construction and operation
  
• Specialist in local power supply systems
  
• Microgeneration systems designers
  
• Energy storage designers
  
• Hydrogen energy engineers
  

Achieving sustainable resources and net-zero carbon emissions requires specialized expertise in various critical fields, including digital control of power facilities, cybersecurity, highly automated networks, information modelling, energy-focused IT, robotic systems engineering, nuclear power, local power supply, microgeneration systems, energy storage, and hydrogen energy. Collaboration among the BRICS countries in on mutually agreed upon is of utmost importance, as each nation brings diverse expertise and resources to the table. By pooling their knowledge and research capabilities, BRICS nations can accelerate the development of sustainable energy technologies, optimize energy distribution, and improve grid resilience. Joint efforts in cybersecurity ensure the reliability and security of energy infrastructure, safeguarding against potential cyber threats.

BRICS countries have advanced technologies in the field of both conventional, low-carbon and carbon-free energy. However, according to the survey, only 1/3 of universities have operational demonstration centers, while more than 90% send students on internships to companies to gain practical experience. Establishment of a demonstration center will contribute to the practical training of specialists for the fuel and energy sector, as well as promote the development of interaction between universities and energy companies.

The potential for cooperation between the BRICS countries in developing the labour market in the energy sector, energy education and human potential is vast and multifaceted. By harnessing their collective strengths and synergies, these countries could drive substantial progress in the sustainable energy transition, create significant employment opportunities, enhance skills development and boost energy education. The aim of this cooperation is to create a robust, shared framework that not only accelerates each country’s individual transition to renewable energy, but also contributes to global sustainability goals.

The bloc had established various mechanisms and platforms for collaboration across a wide range of areas, reflecting their shared commitment to strengthening partnerships and addressing common challenges. Some key aspects of the current cooperative space for BRICS include:

While the specific cooperative initiatives and mechanisms may have evolved since my last update, the essence of cooperation and shared commitment to collaboration among BRICS countries continue to play a vital role in shaping the global agenda.

There are several potential avenues for further collaboration among BRICS countries that can contribute to their collective growth and development. Some of these potential areas for cooperation include:

• Digital Economy and E-commerce 
  
• Financial Cooperation and Currency Arrangements 
  
• Water Resource Management

The BRICS nations, with their diverse strengths and shared aspirations, have a unique opportunity to lead the way in the global energy transition. As they move forward, their collaborations will not only shape their own futures, but also contribute to the global transition towards a more sustainable, inclusive and prosperous energy future.