Smart Energy Expo at Tokyo Big Sight has always been a major event covering the full energy and electricity value chains, but this year it was noticeably larger and more diverse.
The BESS sector has been flooded with new players, primarily from China looking to capitalize on the growing energy storage market. Hydrogen and ammonia technologies are having healthy growth of global and domestic technology players as METI’s CfD scheme sends positive signals to the market.
Grid technology has been clearly highlighted in both the GX and Strategic Energy Plan, which has led to clear growth in both hardware and software solutions in this space.
As we had previously shared, the new Strategic Energy Plan is shifting to an outlook where total energy demand will increase, and therefore moving toward a technology-inclusive strategy with a sense of A+B rather than A or B as the path forward for Japan.
How does this play out in the human resource market?
More players, same talent = Supply & demand imbalance
Renewable and BESS developers, power trading firms, fuel cell technology companies, weather and load forecasting technologies, and hardware OEMs – All these are areas with more players now than just a couple of years ago. The first movers in any given area had the advantage to pick up the bilingual, experienced and qualified talent who were willing to take on a new challenge.
Today, in many segments, that willing minority has already made their move. Yet more players hunger for the same talent. The result? It’s the same as the imbalance in the supply and demand of electricity, we see a price spike. Companies looking to attract the top talent, those who are ready to ‘plug and play’, will have to pay a premium to attract them, and are likely to face competition to secure the best hires.
A key example of this imbalance is clear in electrical engineering talent that has an understanding of grid connection and operations. TSOs have traditionally had a large workforce of this type of professional, however this pool is being headhunted out to developers faster than TSOs can replace them – with talent enticed by flatter business models, higher salaries and more operational freedom. Not only does this affect the competition for this talent pool, but it also leaves the TSOs understaffed. With record-high grid connection requests, as PV solar development shifts to higher volume, the smaller scale projects and LTDA bids for BESS projects are increasing and the TSO grid teams are becoming overworked, creating a clear bottleneck beyond talent demand.
The next outside talent revolution?
In the early 2010s, with the wild west era of Japan’s lucrative FIT program for renewable energy projects, the same massive demand on a small talent pool was also clearly seen. The result was a highly diverse hiring strategy from developers keen to seize upon the opportunity that the FIT presented. People shifted primarily from sales and real estate to take on positions in land origination, project development, etc. For the Japanese talent pool, the focus was taken off industry experience and hard skills, and people were hired for potential to learn and soft skills such as communication and commercial sense. Global developers and EPC firms brought experienced people from overseas with hard skills and experience in solar project development, management, design and construction, regardless of language skills.
As we enter into a more diverse, data-driven and connected energy system, the current talent market already in the energy industry is again not enough to satisfy the demand of all players in the market. The need to attract and hire those with transferable skills from other industries, or bring in talent from energy markets abroad, is increasing again.
Clarity, attraction and education the keys to success
In order to hire from non-obvious talent pools, hiring companies will need to be clear on what core skills are necessary, and what is trainable. Can a commodity trader who understands trading, credit and merchant risk become an asset once you teach her the intricacies of the power market? How much value can a structural engineer with experience in European floating wind projects add if you invest in hiring an interpreter to work alongside him?
Next, the education and attraction pieces will need to go hand in hand. Ambitious talent flocked to the solar industry in the FIT boom for the simple chance to earn big. This was the world’s most lucrative FIT program at the time – the attraction piece was akin to a goldrush in colonial days. Now, with a more complex market and various business models, telling a clear story to talent and creating a strong unique selling point for your business is more important than ever.
Onboarding and education are key to making that new hire stick. Approximately 37% of employees who leave a company do so within their first year. The top reason cited for leaving during this period is a lack of career development, which could be mitigated by outlining a clear career roadmap and providing adequate training during the onboarding process. This is especially important in the current market landscape since competitors entering the market after you will most certainly have a target laser sighted on your employees.
Diverse opportunities + diverse talent the way forward?
As the energy market becomes more complex, with multiple asset types emerging as solutions, opportunities for talent become more diverse. Done right, increasing the mix of talent from both different industry and technical backgrounds fosters innovation, adaptability, and competitive advantage.
Diverse experiences bring fresh perspectives that drive problem-solving and the development of novel solutions. Employees from varied sectors introduce best practices, enhancing agility and helping companies identify new opportunities while avoiding industry blind spots. Decision-making improves as different viewpoints challenge deeply entrenched (and sometimes counterproductive) assumptions and reduce groupthink, leading to more balanced strategies.
Additionally, technical diversity enhances customer understanding, encourages cross-disciplinary collaboration, and fosters a culture of continuous learning. This not only broadens team capabilities but also boosts employee engagement and retention, ultimately creating a more resilient, innovative, and adaptable workforce.
Andrew Statter is a Partner at Titan GreenTech, an executive recruitment agency focused on the clean energy space.
