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UTILITY WEEK | 17TH - 23RD JUNE 2016 | 23 Operations & Assets Market view U tilities are in dire need of talent – spe- cifically individuals with the right mix of ingenuity and expertise to create world-class smart grids. According to the UK Commission for Employment and Skills, 36 per cent of employers in the energy sector struggle to fill vacancies and 40 per cent have had to increase spending on recruitment to comb the industry for sought-aer skills. There are a number of reasons for this. First, smart grids are cutting-edge infrastruc- ture. Morrison Utility Services recently noted that we no longer rely on toolboxes of span- ners, shovels and picks. We need a new gen- eration that can pilot drones and use things that haven't been invented yet. Second, an image overhaul is needed. The industry is on a momentous modernisation drive. Smart grids are evolv- ing at a rapid pace and, once mature, will transform the way we live, work and play in the same way the internet has. Because energy is so fun- damental to society, people with the right technical savvy are being amply rewarded. Technology providers and consultancies offer a hot skills bonus, in the region of a 30 per cent salary increase and the chance to work at the vanguard of innovation. In fact, because smart grid skills are in such high demand, people are starting to name their price. This isn't sustainable – employ- ers' wallets are only so deep and the industry needs a steady stream of talent to future- proof our energy supply. So how do we make the situation more viable? By exciting a new generation of tal- ent and developing the people that we have to create smart grid A-Teams. Creating smart grid A-Teams Like the A-Team of the 1980s, there's room for a plethora of skills and types of people. In the TV show, each team member had a special role, from the visionary leader to the smooth talker and strong man mechanic. Similarly, smart grids need multi-dis- ciplined teams. Versatile individuals who can work alongside traditional power engi- neers and team members with advanced digital skills, and consult with colleagues with commercial acumen. Successful utili- ties will be those that create a full-ser- vice function, as opposed to one or two lone superstars. Energising millennials The fact that half of the current workforce in the utility sector will leave in the next decade, either by retiring or going else- where, is an issue companies can ill afford to ignore. On the one hand this deadline is exacerbating the skills deficit. On the other it is providing an opportunity to replenish and rejuvenate the sector by recruiting a new wave of talent, hungry for innovation and fresh ways of doing things. It's been well documented that millennials have grown up with the internet. Using digital technology is second nature. Smart grid solution providers are known for tak- ing the top 20 best students, fresh out of university, and training them up. Smart grid utilities are starting to do this but they must be prepared to do more. Developing existing talent As well as looking outward, companies must also audit and upskill their existing work- force. Many ambitious middle managers with 10 years' experience represent untapped smart grid potential. Individuals of this ilk are seeking opportunities to develop an expertise in smartgrids. This is great news for their career acceleration. If companies can acknowledge their employees' aspirations earlier on, they'll have a much better shot at retaining valued members of staff, through sought-aer train- ing and development opportunities. Long gone are the days when people would sit in a job until retirement. Employers now have to work hard to keep staff engaged. The battle heats up Companies face a conundrum. Either train people and lose them on the open market, or do nothing and lose vital ground. Smart grid skills remain in short supply, but firms with advanced development opportunities could make their brightest and best even more attractive to competitors. The electricity grid is undergoing an historic upgrade. The industry needs more people with the right qualities and skills. Exposing employees to the workings of the smart grid may increase the bounty on their heads but the human capital investment will pay long-term dividends. Smart grids can't be fully switched on without people. Stephen Haw, partner, energy practice, Baringa In search of smart grid skills Utilities have a stark choice – pay through the nose for skilled staff to work on smart grids, or train existing staff and face the prospect of losing them to their competitors on the jobs market. Prospects for energy sub-sectors in the UK Nuclear 10-13 new plants planned by 2030 to replace retiring reactors; 16 GWe of new capacity in pipeline; low-carbon energy aims mean nuclear could contribute 40- 50% of the energy mix by 2050 Renewables £7.4 billion invested in 2013, half of the total investment in energy; 33,000 more jobs forecast in Northern Ireland, and 40,000 in Scotland; growth has potential to add billions in value to the UK economy Electricity Investment of £100 billion needed to upgrade the energy grid by 2020; large-scale infrastructure invest- ment expected to accommodate renew- able energy suppliers; government policy is likely to create incentives for this Oil and gas Currently meeting 75% of UK's energy demand; despite high investment, new fields are getting harder to find; production down 50% since 1999; falling oil prices have led to job losses and future uncertainty, with exploration reduced "Smart grids are evolving at a rapid pace and, once mature, will trans- form the way we live, work and play in the same way the internet has"