Implications of electricity system transition on employment; the gainers and the losers: A systematic literature review

Decarbonising the energy system, particularly the electricity sector, is crucial to mitigating climate change and meeting global commitments. Limiting global temperature rise within 1.5 °C requires 70–80 % of global power to come from renewables, necessitating the retirement of thermal generators, which currently account for over 50 % of the world's electricity. This will have significant technical (underutilization and inefficient operation of thermal plants) and financial (revenue losses for thermal project developers) implications. However, the most profound impact will be on employment, with widespread job losses in the labour-intensive thermal sector, affecting livelihoods across the entire value chain, including coal mining, preparation and transport. Although the transition will create new job opportunities in the renewable energy (RE) domain, there will be a mismatch in spatial distribution and skillsets required. In order to have a holistic overview and to explore the different modalities thoroughly, we undertake a systematic literature review of the employment impacts of RE transition. The review reveals mixed outcomes, with gains mostly in short-term RE jobs like construction and manufacturing, and losses in long-term operation and maintenance roles in thermal. To maximise decarbonisation benefits and minimise adverse effects, comprehensive policies and strategies, developed with stakeholder involvement, are essential for a smooth, equitable energy transition.