What does the Finkel Review mean for organisations?

close up meeting documents

The Finkel Review has gained recent media attention following its release and is the subject of continued discussion on the future of Australia’s energy and climate policy. What is the Finkel review? And what will it mean for Australian companies and the employment market? 

Mark Hetherington, Manager for Accounting & Finance Contract for Robert Walters, Melbourne recently attended an event hosted by the Australian British Chamber of Commerce where discussion centred on this very topic.

 

What is the Finkel Review?

With Australian electricity being driven by climate change, renewable energy sources and closure of aging coal fired power stations; the sector over the coming decades is expected to undergo a massive transition. In response to this transition, The Finkel Review has been developed to:

  • deliver on Australia’s emissions reduction commitments
  • provide affordable electricity, and
  • ensure a high level of security and reliability for the sector.

What are the key points of the review? 

Supply & demand of energy

The supply of energy and how it is sourced is very important. To better prepare for the future Australia needs to ensure there is enough supply to meet demand during peak seasons to avoid another state blackout with supply now coming from cleaner generation.

Costs

The cost of wholesale energy is increasing as it costs more to produce energy through new cleaner coal operations as opposed to old coal fire powered stations. This in turn costs more to energy retailers and puts more pressure on the ability to keep prices down.

The future is solar

Solar energy is the means of the future and clean energy generation, which is affordable and efficient. 

Energy Storage

Solar energy is predominantly produced during the day creating issues around how to efficiently store the energy, with technological advancements slow to respond. 

Structure for the market

The Finkel Review is the government’s way of setting a structure within the energy industry to better prepare for the future.

What does this mean for Australian organisations and candidates?

Over 28,000 new jobs will be created by 2030 if a 50% renewable energy target is achieved resulting in 50% more employment in comparison to continuing business as normal.

The 2016 report The Renewable Energy: Future Jobs and Growth report from the Climate Council outlined that the increased uptake of renewable electricity will create employment nation-wide in construction, operation and maintenance of renewable energy installations. 

How can organisations resource and source the right talent.

  • Diversify operations:

A lot of companies within the energy industry are diversifying their operations and having a focus in the renewable energy markets to keep up with competition and better prepare for the future.

  • Analytical roles in high demand:

An increase in analytically focused positions will be seen as organisations look to see what certain operations can mean for their businesses in the long term and their profitability.

  • Top talent and finance as face of the business:

Companies should look at their current teams now to prepare them for the next few years, making sure they have top talent on board to drive the business. A lot of companies are turning towards a more business partnered focus within finance as they are becoming the face of the business. 

 

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