Energy sector

The main objective of the OSKA study on workforce and skills needs in the energy sector is to provide analysis and forecast results regarding how employment, labor demand, and required skills in the sector’s core occupations will change by 2035. The key findings of the study are summarized below.

Energy is a strategically important sector, directly affecting Estonia’s energy security, supply reliability, economic competitiveness, and climate targets. Therefore, workforce sustainability and the timeliness and relevance of skills are central for the state, employers, and the education system. In this study, the core unit of analysis is the “core occupation.” Each core occupation groups jobs that generally require the same level of education and similar training, with comparable job content and skills requirements. In 2024, nearly 11,000 people were employed full-time in energy sector core occupations.

Future workforce and skills needs in the energy sector will be most influenced by technology development and innovation (including digitalization, automation, and new technologies such as storage solutions and hydrogen technology), which change job content. During electrification, energy systems shift from other energy carriers to electricity-based technologies, requiring the management of increasingly intelligent systems (e.g., new electricity grids, battery and hydrogen storage), which in turn requires specialists with higher technical competence and education. Rapid technological development also demands new cross-sector skills, increasing the need for engineers and skilled workers with a broad foundational education.

Skills of growing importance include knowledge of new technologies (including AI and its applications) and sector-specific innovations, as well as digital skills (including energy-specific IT skills). Cross-sectorally, the demand for cybersecurity knowledge and skills is rising. A circular economy and environmentally conscious mindset are important, as is the ability to make data-driven decisions. Broad educational preparation (including the ability to move between disciplines), the capability to integrate different energy types and systems (electricity, heat, cooling, and storage), and systems thinking are essential. These factors allow employees to have more diverse career opportunities while generating greater added value for companies.

An additional significant trend affecting workforce and skills needs is population aging. The sector faces the challenge of replacing employees who retire, particularly skilled workers. The sector’s older workforce creates a significantly higher replacement need over the next decade.

More than many other sectors, energy is affected by domestic and European political decisions. Estonia’s primary guiding document for sector development, the National Energy and Climate Plan (ENMAK), sets key objectives: ensure energy security, develop a clean energy economy, and transition to climate-neutral electricity and heat production by 2050. Both ENMAK and the study’s experts emphasized the importance of a diversified energy portfolio, noting that the future of Estonia’s energy sector increasingly relies on combined energy production, including both controllable and uncontrollable capacities. Estonia’s energy security and the transition to clean energy directly depend on the availability of skilled workers.

Despite an increase in enrollment in energy programs in recent years, the number of graduates may not be sufficient to meet workforce demand in core occupations. Particularly in higher education, high dropout rates and graduates entering employment outside core occupations are key reasons.

• In recent years, enrollment in higher education energy programs has grown significantly. The growth has been driven by an increase in bachelor’s entrants, with over 100 additional entrants in the past two years, nearly doubling the number compared to five years ago. Vocational education enrollment has remained roughly the same over the last five years (around 600 entrants), except for the 2024/25 academic year, when intake was about 200 higher than usual.
• Over the past six years, only about 45% of bachelor’s entrants graduate on time, and about 50% of master’s entrants do so. Around 60% of young vocational students (under 24) graduate on average in recent years.
• In the 2024/25 academic year, over 200 students graduated from higher education programs in the energy sector, 60–70 more than in the previous two years, largely due to growth in master’s graduates. Compared to five years ago, the total number of graduates remained roughly the same.
• Vocational graduates numbered 350–400 per year. Over the last decade, enrollment and graduation in electrical and automation fields have increased, partly due to a rise in adult learners seeking to upgrade qualifications, though the number of young graduates has also grown somewhat.
• In 2024, 37% of higher education graduates were employed in core energy occupations, slightly more (44%) among master’s graduates. For vocational graduates, 43% were employed in core occupations. Most graduates not working in core occupations were still employed in roles where their skills could be significantly applied (e.g., other engineering fields). About half of vocational graduates working outside the sector applied their skills significantly. Therefore, graduates generally do not face major difficulties in using their education, but fewer than half of both vocational and higher education graduates enter core energy occupations.
• Training supply for core energy occupations is smaller than the total number of suitable graduates. Annual higher education supply is about 85 graduates, and vocational supply is about 250. Consequently, the sector cannot rely on sufficient new entrants to fully meet labor demand.

Workforce demand in the energy sector remains high in the coming years. New workforce needs arise both from significant replacement demand and from growth in employment in core occupations due to electrification and automation across the economy and society. A lack of sufficiently skilled labor may become the main risk to achieving national energy goals and transitioning to clean energy.

• If 11,000 people were employed in core occupations in 2024, this number is projected to increase by around 2,000 (approximately 17%) by 2035.
• Employment is expected to grow among energy engineers, electricians and automation technicians, production and maintenance managers, and supporting specialists. Employment in operators and managerial positions is expected to remain roughly the same. Numerically, the largest contribution to employment growth comes from the electrician and automation core occupation, increasing by nearly 1,400 employees (20%), and it currently has the largest workforce among core occupations.
• The high proportion of older employees affects workforce demand more than the average and increases the need for graduates of energy programs. In 2024, 25% of employed people in Estonia were 55 or older, compared to 30% among employees in core energy occupations. The situation is most critical for operators, where around 40% are 55 or older.
• Considering replacement needs and employment growth, roughly 500 graduates from upper secondary education are needed annually in core occupations, totaling about 5,000 over the forecast period. The number of new graduates is lower than required, with an annual shortage of over 100 graduates in comparable core occupations.
• Meeting workforce demand will require more new graduates entering core energy occupations. This will necessitate reducing dropout rates and adjusting learning environments to accommodate student numbers. Potential sources of labor include foreign workers, returning professionals with relevant training from other sectors, and continuing or retraining programs for employees with a technical education background.

Estonia has decided to gradually phase out oil shale energy, and additional controllable production capacity is already needed. One option is adopting nuclear energy, which requires higher education specialists and vocationally trained skilled workers, currently in short supply.

A two-small-reactor nuclear plant would require 200–300 employees, distributed as follows:

• Top nuclear specialists with deep knowledge (e.g., scientists, key design and safety experts, 5%), who are scarce in the Estonian labor market.
• Experienced nuclear specialists (e.g., process engineers, operations, maintenance, and supervisory staff, 15%), primarily trained via short courses, continuing education, retraining, and vocational programs.
• Employees with nuclear awareness but no nuclear background (80%), knowledgeable about nuclear safety culture and nuclear sector specifics; these employees are already available in the Estonian labor market and form the majority of the plant’s workforce.
• In total, 30–40 top nuclear specialists and 50–70 nuclear-trained specialists would be needed, with remaining staff requiring general nuclear awareness and relevant technical training for skilled workers.
• It is important to note that Estonia does not currently have enough full-time staff to fund and create nuclear-specific programs. Possible solutions include cooperation with foreign universities and scholarship programs for Estonian engineering students studying abroad.
• Continuing nuclear-specific courses, adding modules to existing higher and vocational education energy programs, offering micro-degree programs, and retraining current specialists are also important.