Key Takeaways: 

• Exceptional demand meets a shrinking supply: Europe’s power sector is thriving, creating an estimated 250,000 new jobs. But this demand clashes with a shrinking skilled workforce due to an ageing demographic, competition from other sectors for STEM talent and a slow adaptation to new skill sets.
• Pan-European competition for workers: Companies across Europe are also competing for the same critical engineering roles, as well as emerging specialisms in digitalisation and data.
• Compliance with labour laws is a major operational risk: Employing a cross-border workforce introduces significant complexity and risk. Varying national laws on contractor status, social security and workers’ rights can lead to financial penalties, project delays and reputational damage if mismanaged.
• Strategic recruitment is a project-critical function: To succeed, companies must view talent acquisition and retention as a strategic necessity. This involves offering attractive career prospects and, crucially, providing seamless onboarding and relocation support to secure commitment.
• A specialist partner secures talent and mitigates risk: Partnering with a power-sector specialist provides a strategic solution. NES Fircroft offers access to a wide talent pool, ensures full compliance with local labour laws, and manages contractor mobility and support, to help safeguard project delivery.

Europe’s power sector is undergoing a huge transformation. Driven by the need for decarbonisation and energy security, the region is seeing massive capital expenditure (CapEx) put towards new generation, grid modernisation and storage solutions. From the UK’s ‘Great Grid Upgrade’ to an 800 MW green hydrogen facility in Germany, the pipeline of projects is long and varied.

But all this activity is hiding a major energy project resource challenge: a shortage of skilled workers. As a consequence, the companies leading this transformation are facing project delays, increased costs and missed strategic goals. 

This article investigates the demand and supply factors causing this resource challenge and explains how a strategic partner can help secure your European power project workforce.

The Drivers of Workforce Demand

The European Union’s REPowerEU Plan – designed to save energy, diversify energy supplies and produce clean energy – has accelerated investment in renewable energy infrastructure. Simultaneously, national governments are prioritising grid resilience and interconnection to accommodate this new, decentralised power flow.

The net result is an ever-expanding list of European power projects, such as:

• Sylen offshore wind power plant (Sweden): 8675 MW capacity from 347 turbines, with commissioning expected in 2033.
• ‘Great Grid Upgrade’ (UK): 17 major infrastructure projects to scale up the grid and update existing networks.
• Project Anker green hydrogen facility (Germany): scheduled to have an electrolysis capacity of 400 MW, with plans to expand it to 800 MW.
• Fernando Pessoa photovoltaic plant (Portugal): 1200 MW capacity, set to become the largest photovoltaic project in Europe and the fifth largest in the world.

This translates into significant demand for talent – estimated at around 250,000 new jobs – across multiple project phases: initial feasibility and design, procurement, construction and installation, and final commissioning. 

…But a Decreasing Supply of Skilled Professionals

Alongside this backdrop of increasing demand for personnel, a number of supply-side factors are producing a negative effect, including:

• Retirement of experienced professionals: A large proportion of engineers in the power sector are ‘baby boomers’ and so are now reaching retirement age. This represents a significant loss of not only the number of workers but also industry expertise.
• Competition with other industries: Sectors such as tech, law and finance are becoming increasingly attractive for graduates studying STEM courses. Companies in these sectors are often able to market themselves as a modern and aspirational employer, offering a flexible way of working and rapid career progression.
• The evolution of traditional engineering roles: As new technologies such as renewables, carbon capture, smart grids and digital systems have grown, there has been a shift in the engineering skill sets that are required. But the industry has sometimes been slow to reskill personnel as well as to work with academia to ensure that courses and training are still relevant.

One final point worth noting is that there is a lack of diversity in the power sector. In traditional engineering roles, there are a number of under-represented groups, such as women and ethnic minorities. This can sometimes lead to an image problem for the industry, which makes it less appealing to people from these groups. The outcome is that the power sector is missing out on a potentially large talent pool, which could bring with it new skills and experience to projects.  

Roles in Demand

The scarcity of skilled professionals is an acute energy project resource challenge. Companies are competing not only on salary, but also on the ability to offer engaging, long-term career prospects on Europe’s largest projects. The roles in highest demand reflect the sector’s evolution, such as (but not limited to):

• Renewable energy engineers
• Electrical engineers
• Instrumentation and control engineers
• Power plant operators and technicians
• HVAC and energy efficiency specialists
• Digital, data and cybersecurity experts 

This competition is not confined by borders either. The skills needed in Germany’s wind energy sector are the same as those required for Scotland’s offshore developments. This creates a pan-European talent market, introducing a further difficulty: navigating national labour laws.

Labour Laws: Compliance Complexity

Deploying a cross-border workforce, whether as permanent expatriates or contingent contractors, involves many compliance complexities. Labour laws vary significantly across European nations, governing everything from contractor classification and social security contributions, to maximum working hours and termination rights.

For example, the distinction between a self-employed contractor and a ‘disguised employee’ is sometimes treated differently between countries. Similarly, regulations concerning the deployment of workers, such as the EU Posting of Workers Directive, require employers to guarantee the host country’s core employment conditions.

The risks of non-compliance can be far-reaching too – not just financial penalties. It can lead to project delays, reputational damage and, in severe cases, even criminal charges for company directors. For those managing European power project workforces, ensuring compliance with every local regulation can be a huge administrative burden, diverting focus from core project delivery.

Energy Project Resource Challenges: The Solution

So, how can organisations resolve these problems of in-demand but scarce talent, as well as compliance complexity? The solution lies in partnering with a specialist who understands the technical requirements of European power sector recruitment.

At NES Fircroft, we provide support with every aspect – from recruitment and onboarding, to relocation and on-the-ground support – throughout the entire project lifecycle:

1. Enhancing access to local and expatriate talent

Our established power-sector networks allow us to identify and engage the best local and global specialists. We understand the specific skill sets required for each phase of a power project, from initial CapEx planning to final commissioning.

2. Reducing attrition and securing commitment

We help with contractor onboarding and relocation in Europe, providing a seamless and supported transition for personnel. This includes assistance with visas, accommodation and cultural integration. By ensuring your professionals feel valued and supported from day one, we help you minimise early attrition and secure their commitment for the project’s duration.

3. Mitigating compliance risk

We provide robust contractor mobility and management solutions. Through our established local entities and expert knowledge of host-country regulations, we ensure that every professional is employed compliantly. We manage the complexities of employment contracts, tax, social security and immigration, significantly reducing your administrative burden and shielding your organisation from the risks of non-compliance.

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The success of Europe’s energy transition depends on its ability to build not only new infrastructure, but also a new, dynamic and resilient workforce. The companies that will lead in this sector are those that succeed with their talent acquisition and retention – this is where NES Fircroft can help.

To discover how we can support you with your power recruitment in Europe, please contact our specialist team today.