By Sakshi Bansal, Associate, Renewable Watch
India has witnessed a remarkable 396 per cent surge in its installed non-fossil fuel capacity over the past nine years. According to the CEA estimates, this capacity currently stands at 179.57 GW, including large hydro, and constitutes approximately 42 per cent of the nation’s total capacity as of November 2023. In 2022, India recorded the highest year-on-year increase in renewable energy addition capacity, reaching a growth rate of 9.83 per cent. As per a joint report by Sattva Consulting and Skill Council for Green Jobs (SCGJ), with support from J.P. Morgan, India experienced an unprecedented investment in renewable energy, reaching $14.5 billion in financial year 2022 alone. This marked a significant surge of 125 per cent compared to 2021.
Thus, renewable energy continues to play a pivotal role in India’s growth and development. Its significance extends beyond decarbonising the economy to encompass employment generation. In fact, the Paris Agreement in 2015 acknowledged the significance of considering the interests of workers and communities, ensuring that the transition to net zero facilitates the creation of decent work and high-quality jobs. Renewable energy emerges as a promising sector for sustainable job creation for two primary reasons. First, it is witnessing substantial growth, both in India and globally, driven by increased competitiveness in the energy market and its role as a cleaner alternative for energy transition. Second, the sector demonstrated resilience and durability during the disruptions caused by the Covid-19 pandemic. The International Renewable Energy Agency (IRENA) reports that renewables create 7.5 full-time jobs for every $1 million invested on average, while fossil fuels generate nearly a third of that amount, at 2.65 jobs.
Current employment status
According to IRENA estimates, in 2022, India employed nearly one million individuals in the renewable energy industry. Of this, hydropower, with approximately 466,000 jobs, emerged as the largest employer, followed by solar photovoltaic (PV), which had 282,000 individuals engaged in both on-grid and off-grid systems. Similarly, the solar industry in the country saw an increase of 52,100 jobs in project development during fiscal year 2022, especially in construction and installation. Utility-scale solar generated 72,700 employment opportunities in 2022, up from 42,900 in 2021. During the same period, rooftop solar employment increased to 65,400 jobs from 43,000 jobs in 2021. Meanwhile, wind sector employment expanded modestly, reaching 26,100 jobs from 25,500 in 2021. Apart from the solar and wind power segments leading employment generation, there are other emerging technologies such as mini- and micro-grids, floating solar plants, solar-wind hybrid plants, offshore wind plants and battery storage that have the potential to significantly contribute to employment generation. As per IRENA estimates, the capacity for job creation in distributed renewable energy (DRE) initiatives, encompassing rooftop solar, mini-grids, and related sectors such as inverter manufacturing, solar lights and aluminium frames surpasses that of utility-scale projects. Compared to direct, formal DRE employment, DRE solutions have the potential to generate up to five times as many indirect jobs in local areas.
According to a Centre for Science and Environment factsheet, for every 1,000 DRE systems sold in India, three trained individuals are needed to educate the public and raise consumer awareness. Additionally, five advocacy, education and research-based jobs are created for every 1 MW of DRE product installation and operation. Moreover, the floating solar PV sector also has the potential to generate additional job opportunities. A floating solar project encompasses four stages, each requiring individuals with diverse skill sets for various durations of work. As per a joint report by the Council on Energy, Environment and Water (CEEW), Natural Resources Defense Council (NRDC) and SCGJ, 58 workers are directly employed by small-scale floating PV plants with a capacity of less than 1 MW, while 45 individuals are employed by mid-scale plants with a capacity of less than 10 MW during their deployment. This segment may also create indirect employment through the production of domestic modules and specialised components such as mooring systems, anchors, floats, research and product design. Furthermore, as outlined in CEEW’s case study, a 61 MW wind-solar hybrid power project engages a workforce of 250 individuals throughout its deployment, with 13 per cent and 87 per cent permanent and contractual workers respectively. Additionally, it was observed that the installation of a 10 MW battery energy storage system at Tata Power Delhi Distribution Limited’s Rohini substation involved a workforce of 61 individuals, with 29 permanent and 32 contractual workers. Most of these individuals were highly skilled, possessing expertise in electrical, civil and mechanical engineering. The majority of the workforce was primarily required during the construction and commissioning phases.
Outlook
India is positioning itself as a global frontrunner in sustainable development, with the potential to generate $1 trillion and $15 trillion in value by 2030 and 2070 respectively, according to Sattva Consulting, SCGJ and J.P. Morgan. The attainment of India’s 500 GW non-fossil electricity capacity target by 2030 has the potential to create over 3.5 million jobs, encompassing both short-term and long-term positions, as discussed during an NRDC and partner session at COP26.
The solar energy industry is a rapidly expanding and profitable sector, projected to grow at a compound annual growth rate (CAGR) of 8.6 per cent from 2022 to 2030. With an estimated installed capacity of 940 GW by the year 2050, the sector could generate a total of 3.26 million jobs. Further, the installation sector is projected to generate a significant number of semi-skilled and low-skilled jobs, but these roles are expected to be temporary in nature. Conversely, manufacturing jobs are anticipated to provide more long-term employment opportunities. With escalating investments in the industry, India is progressing towards meeting its goals of installing 140 GW of wind capacity by 2030. With a current workforce of over 60,000 in the wind segment as of 2022, it is anticipated that this will triple by 2030. The bioenergy segment is expected to generate approximately 0.27 million jobs by 2030. The installation, production, and operations and maintenance segments of the value chain are projected to create 0.1 million jobs by 2030. Additionally, India’s green hydrogen industry holds immense growth potential, with an anticipated CAGR of 20 per cent from 2025 to 2030, propelled by strong policy backing. The sector is poised to generate 0.6 million jobs by 2030. While the majority of employment opportunities will be in plant construction, these roles are expected to be of a short-term nature. Crucial segments for generating long-term employment include electrolyser and component manufacturing, as well as green hydrogen production. Furthermore, between 2021 and 2030, the Indian market for electric vehicles (EVs) is expected to expand at a CAGR of 90 per cent. By 2030, it is anticipated that the expanded manufacturing of EVs will create 10 million direct jobs and 50 million indirect positions, providing opportunities to hire new employees and upskill and integrate the 35 million people currently employed in internal combustion engine jobs. A key component of the value chain for the creation of jobs and skills is the installation of charging infrastructure, manufacturing and after-sales services.
The way forward
While there is an anticipation of increased demand for green jobs, the ecosystem supporting the development of necessary skill sets is currently in its early stages and progressing at a gradual pace. However, addressing various systemic challenges is crucial to hasten efforts in skill building. These hindrances encompass the absence of policies promoting green skill development aligned with emerging job roles across sectors, funding shortfalls, insufficient infrastructure for skill development, exclusion of marginalised groups from training programmes, lack of collaboration among key stakeholders and limited efficacy of programmes due to factors such as the absence of synergies across skill development bodies, a shortage of expert trainers and inadequate equipment.
Positive strides have been made in employment generation within the clean energy sector. The Ministry of New and Renewable Energy (MNRE), through the short-term training and fellowship components of the Suryamitra Skill Development Programme, is developing qualified and skilled manpower. This initiative aims to train skilled personnel for the installation and operations and maintenance of renewable energy systems. As of November 2023, the programme, focused on training solar PV technicians and has successfully trained over 55,000 individuals. Additional initiatives, such as the Jal-Urjamitra for small hydro projects, the Vayumitra for wind power projects, and the Varunmitra Programme for solar water pumps, are also being offered. In addition, the MNRE has provided support for a six-month training programme tailored for semi-literate women residing in rural areas. It focuses on the assembly, installation, and operations and maintenance of solar lanterns, lamps and related technologies. Furthermore, the SCGJ is creating certifications for forward-looking and emerging sectors essential to the energy transition, such as e-mobility, green hydrogen, biofuels and energy storage. The SCGJ, along with its training collaborators, has provided hands-on training to over 100,000 trainees in solar and other renewable energy fields.
Going forward, to harness the potential of green growth, India must establish a scalable skill infrastructure to guarantee high-quality training. The emphasis should be on upskilling and reskilling the current workforce in traditional sectors, coupled with a greater focus on decentralised renewable energy sources.
