Syntax Literate: Jurnal Ilmiah Indonesia p–ISSN:
2541-0849 e-ISSN: 2548-1398
Vol. 9, No.
12, Desember 2024
TRANSITIONING TO A GREENER FUTURE: STRATEGIES FOR
ENHANCING EMPLOYEE COMPETENCIES IN INDONESIA UTILITY COMPANY MOVING TOWARDS
RENEWABLE ENERGY
Sandy
Febrian Robiady1, Riani
Rachmawati2
University Indonesia, Indonesia1,2
Email: sandy.febrian21@ui.ac.id1,
riani.rachmawati@ui.ac.id2
Abstract
This research aims to analyze the competencies
required by employees related to renewable energy at Indonesia Utility Company
and to explore the challenges involved in developing IUC employees during the
energy transition era. The study employs qualitative methods. this study
employs both primary and secondary data. Subject Matter Experts, structural and
functional ranks in charge of human resource development and the renewable
energy sector were used as an samples in this study to
conducting in-depth interview and Focus Group Discussion. The results of this
study elucidate the presence of technical competencies, such as RE planning,
ammonia and biomass co-firing, and rooftop solar PV installation. Additionally,
generic competencies including Adaptability of New Technologies, Business
Savvy, Critical Thinking, and Learning Agility were identified. All these
competencies collectively contribute to the competency framework concerning
renewable energy at Indonesia Utility Company. Other findings indicate challenges,
such as the yet-to-be-validated validity and reliability of hard competence
assessment methods, uneven distribution of assessments among employees, and the
need for optimization in the capacity and capability development programs for
employees regarding energy transition, such as the Colony program. This study
provides new insights and supports the argument for the need to enhance the
capacity and capabilities of employees to adapt to the energy transition
towards clean energy. The existence of a competency framework that serves as
guidance for IUC regarding renewable energy competencies and its support system
underscores the necessity for the development of hard competency assessment
tools capable of validly and reliably measuring competency levels and gaps.
Keywords: Renewable Energy, Competences, energy transition,
competency development
Introduction
The renewable energy sector encompasses various
technologies that harness energy from renewable sources such as wind, solar,
hydropower, geothermal, biofuels, and others. Renewable energy plays a pivotal
role in the energy transition towards achieving net-zero emissions/carbon by
2060 and contributes to the decarbonization efforts necessary to combat climate
change. This sector has witnessed significant advancements over the past few
decades, as evidenced by the increasing number of renewable energy generators
in the global energy market (IEA, 2023).The focus on
new and renewable energy (NRE) has gained prominence worldwide following the
Paris Agreement and has been accelerated by geopolitical conflicts such as the
Russia-Ukraine conflict. Many countries have formulated policies to promote
renewable energy and prioritize electricity generation from NRE-based power
plants. Yolcan (2023) reported that global
electricity production from NRE sources has been steadily increasing. Over the
past decade from 2012 to 2022, there was an addition of 1465 GW of NRE power
plants, marking a fourfold increase compared to 2012. Furthermore, in 2021,
several European Union countries such as Germany, the Netherlands, Spain, and
the United Kingdom generated a quarter of their annual electricity production
from NRE sources. Transitioning from the current fossil fuel-based economy to a
new paradigm of clean energy in the economy and achieving net-zero carbon
presents a number of challenges that need to be addressed. These challenges
range from the development of broader policies and implementation strategies to
more specific and practical issues, such as the availability of technology and
a country's ability and/or capacity to effectively implement it. One of the
major challenges is developing a workforce with the knowledge, skills, and
competencies needed to maximize all available energy efficiency options and
renewable technologies.
Competencies refer to a set or collection of various
competency units deemed essential for demonstrating superior performance in a
position or role (Loma, 1998). Competencies are a combination of knowledge,
skills, attitudes, and other characteristics (generally known as KSAOs) or
personal attributes crucial for success in a specific job, industry, or
organization. Management literature increasingly recognizes the importance of
competency development in enhancing competitiveness and organizational performance.
Thus, competency development has become a vital strategic management tool in
today's workplace (Bergenhenegouwen, ten Horn, & Mooijman, 1997; Nyhan, 1998). Company growth related to the
ability to anticipate changes in the business environment, manage resources,
and enhance competitiveness can be achieved by continuously evaluating and
developing the types of competencies that must be continually assessed and
developed within the organization. In this regard, competency development is
one of the keys to the success and sustainability of a company's long life cycle
Several studies have been conducted to examine the
role of human capital in the energy transition. According to Bano et al.
(2018)'s research, human capital has an impact on gas emissions, with
increasing knowledge and skills having an impact on reducing gas emissions.
Through their knowledge capacities and technical ability, skilled and competent
individuals assist drive the development of green technology and green
innovation (Siedschlag et al, 2019). Furthermore, skill and knowledge
development is critical in the energy transition (Fytili & Zabaniotou, 2022). Several
studies have also found that employee development is an important problem in
this period of energy transition. One of the most significant issues is the
lack of a workforce with the skills and adaptability to deal with the rapidly
changing evolution of the renewable energy sector (Arcelay et al., 2021). One of
the impediments to the planned development of the renewable energy market is
the scarcity of appropriately skilled human resources (Lucas et al., 2018). Because
the renewable energy industry is becoming increasingly linked to digital
technology and the development of Industry 4.0, human resources must be skilled
in utilizing these technologies in order to meet the sector's demands (Akyazi et al., 2020). This
necessitates a process of upskilling and knowledge upgrading for the existing
workforce to guarantee that they have the necessary abilities to handle the
shift (Akyazi et al., 2020).
Despite the
growth of the NRE market in many parts of the world, Indonesia's energy
transition has been progressing slowly. One indicator is that Indonesia Utility
Company is targeted to achieve a 23% energy mix from NRE sources by 2025.
However, as of 2022, IUC has only achieved 13.41% of this target. Additionally,
the goals for adding NRE power plants and converting Diesel Power Plants to NRE
power plants have not been met. According to a study by the Institute for
Essential Services Reform (IESR) as outlined in the Indonesia Energy Outlook
2023 report, integrating a high level of NRE into an island-based power network
poses significant challenges. IUC, as the operator of the power grid, has
limited experience in operating a power grid with a high proportion of NRE.
This is further supported by IUC management's statements in their annual and
sustainability reports, indicating that employees lack business k nowledge and readiness to face decarbonization due to the
dominance of fossil fuels in the energy mix, high emissions levels, and low NRE
penetration as of 2022. Employee competencies have not been aligned with the
requirements of globalization, which includes decarbonization and NRE. These
competencies have not been accommodated in the existing Competency Directory
and Job Competency Requirements (KKJ).
Therefore, this research will focus on
competency-related issues for IUC employees in the context of renewable energy
during the energy transition. This research aims to assist Indonesia in
achieving Net Zero Carbon by 2060 by define the competencies architecture
needed by IUC employees in the renewable energy sector and determining what is
the challenges for develop the employees that required to create highly
skilled, competitive, and adaptable talents during this energy transition.
Research Method
This study takes a qualitative approach with a case
study method. The qualitative technique is chosen to investigate the viewpoints
or experiences of the subject matter experts who participate. As for the
methodology used in this research, it is a case study. According to Zhang & Wildemuth, (2009), the
defining characteristic of a case study is its focus on a specific entity,
taking into consideration the particular context of that entity's existence.
The entity in question can be an organization, a community, an individual, or a
specific event. In this research, the entity used as the unit of analysis for
the case study is an organization, namely Indonesia Utility Company, with a
specific focus on the case or issue related to the development of employee
competencies at Indonesia Utility Company concerning renewable energy.
This study will employ a non-probability sampling
strategy, which does not give every element or member of the population an
equal chance of being chosen as a sample (Sugiyono, 2019). This
approach was chosen since the sample selection criteria are specific, making it
impossible for every member of the population to be included in the research
sample. Purposive sampling was also used in this study as a research technique.
Sugiyono, (2021) defines
purposeful sampling as a data source sampling approach based on special
considerations. In other words, it is a sampling approach in which the
researcher uses their discretion in selecting people of the population to
participate in the study.
In this case, the researcher will collect data from
specific targets that meet the criteria, such Subject Matter Experts that
certified in renewable energy/energy transition and employees that Hold a
structural role, a generalist, specialist, or expert, and have a minimum person
grade of 11 with at least 5 (five) years of experience with Indonesia Utility
Company and the spesific criteria such as
a) Have
been/are in charge of the function in charge of human resource development for
at least one year and/or
b) Have
been/are currently serving in the function in charge of renewable energy /
energy transition for at least one year and / or
c) Has
been/is currently serving in a function in charge of corporate
planning/business development for at least one year and/or
d) Have/have
been in charge of the function in charge of education and training for at least
one year.
The researcher employed two types of data in this
study: primary data and secondary data. Primary data is information received
directly from a data source for specific goals in a research project, and it
can be collected via methods such as interviews, observations, or
questionnaires (Sekaran, 2016). In-depth
interviews were used to acquire primary data for this study. The researcher
will ask pre-selected respondents a series of questions. To obtain appropriate
data and information for the instrumentation plan, the author employed a
semi-structured interview method. As a result of what the interviewee says,
semi-structured interviews enable for additional questions to be posed
throughout the interview (Fitria, 2024).
Furthermore, numerous questions were created to be open-ended interview,
allowing respondents to freely express themselves in a more relaxed manner
about what the research intends to understand (McCluskey et al., 2010).
In addition to primary data, this study employs
secondary data because secondary data enables researchers to have access to
existing data sets that may be large and comprehensive, including a lot of
information. Secondary data generated from competency directory data, as well
as statistical data on staff development programs and literature studies on
Indonesia Utility Company regulatory/policy papers relevant to the research
topic. In addition, the outcomes of Forum Group Discussions and Meeting Minutes
linked to this research that have been given permission to be utilized as
references in this research will be used as secondary data.
In qualitative research, data analysis begins with
preparing and organizing the data (such as textual data such as transcripts or
visual data such as images) for analysis. The material is then distilled into
themes via a coding and summarization procedure. Finally, the data is
visualized using charts, tables, or conversations Creswell, (2019) In this
research, thematic analysis will be conducted by researcher. Thematic analysis
is a qualitative data analysis method that focuses on identifying,
categorizing, and interpreting themes in text-based data. The data analysis
procedure in this study began with data familiarization, first coding, looking
for prospective themes, data review and refinement, defining and naming themes,
and report preparation.
Result and Discussion
The data for this study came
from in-depth interviews with informants who agreed to be research
participants. The major informants in this study are twe
people who have the following traits and statistics.
Table 1 Informant Data
|
Division |
Gender |
Age |
Position |
Position Level |
Working Duration |
|
|
01 |
Human Capital Strategy |
Female |
35 |
Senior Officer of
Competency System |
Generalist 3 |
12 |
|
02 |
Energy Transition and
Sustainability |
Male |
29 |
Climate Change Control
Technician |
Generalist 2 |
6 |
|
03 |
Corporate Planning |
Female |
37 |
Senior Officer of Strategy
Implementation and Evaluation |
Generalist 3 |
12 |
|
04 |
Corporate Planning |
Male |
40 |
Strategy Alignment and
Development Manager |
Base Management |
15 |
|
05 |
Talent Development |
Female |
55 |
Senior Manager of
Corporate Talent Development |
Middle Management |
31 |
|
06 |
Human Capital Strategy |
Male |
37 |
Senior Officer of Human
Capital Evaluation and Performancec |
Generalist 3 |
13 |
|
07 |
Human Capital Strategy |
Female |
44 |
Human Capital Evaluation
and Performance Manager |
Basic Management |
21 |
|
08 |
Education & Training
Center |
Female |
43 |
Material Development and
Data Processing Manager |
Basic Management |
15 |
|
09 |
Talent Development |
Female |
38 |
Human Capital Skills
Development Manager |
Basic Management |
14 |
|
10 |
Education & Training
Center |
Male |
43 |
Personnel and Financial
Certification Manager |
Basic Management |
17 |
|
11 |
Education & Training
Center |
Male |
46 |
Primary Energy,
Generation, and Renewable Energy Learning Manager |
Basic Management |
19 |
|
12 |
Energy Transition &
Sustainability |
Male |
36 |
Energy Transition Manager |
Basic Management |
12 |
(Source: Processed by
Researcher, 2023)
In the exploratory phase of
thematic analysis, researchers undertake a comprehensive examination of data on
a broader scale. The initial codes generated during the coding stage are then
organized into potential themes, with pertinent codes subsequently amalgamated
to construct overarching themes. The researcher contends that the established
codes may persist as principal themes. Through the conducted analysis, the
author posits that the cultivation of renewable energy competencies among
employees at Indonesia Utility Company in anticipation of the energy transition
can be encapsulated within two primary themes: " Framework Competencies
needed by employees related to renewable energy " and "Develop
Employee in Energy Transition era" These two themes represent overarching
constructs formulated with definitions or terms closely aligned with or
extending from the previously generated codes. Subsequently, the author refines
the initially stipulated codes into sub-themes, elucidating the nuanced facets
of each thematic category.
Framework
Competencies needed by employees related to renewable energy
The research findings depict
the first theme surrounding the identification of competency needs related to
the energy transition strategy at Indonesia Utility Company. This sub-theme
highlights the emergence of new competencies required by employees to support
the achievement of the ongoing energy transition strategy.Within this theme, it is revealed that
Indonesia Utility Company is currently undergoing a transformation 2.0, which
includes an energy transition strategy named the 8 Lighthouse Initiatives to
achieve the net-zero emission target by 2060. Statements from informants and
internal company documentation indicate that this strategy encompasses
decarbonization, increasing the capacity of new renewable energy generators,
and developing a green ecosystem.
Various informants,
including interview results and information from Focus Group Discussions (FGD),
indicate that employees need to have technical competencies related to new
renewable energy sources, such as hydro, hydrogen, ammonia, biomass, bioenergy,
solar, wind, and geothermal. Additionally, emphasis is placed on competencies
related to new technologies such as Carbon Capture, Utilization, and Storage
(CCUS), Battery Energy Storage System (BESS), and the operation of RE power
plant electrical systems. Informants assert that RE generators will become the
base load, replacing fossil fuel-based generators, requiring employees to
understand and master related technologies. Competencies related to energy
transition management, carbon footprint, and climate change management are also
deemed essential.
Moving forward, Carbon
Capture, Utilization, and Storage (CCUS) hold great promise for reducing carbon
emissions from fossil power plants. However, we must also consider its
substitute energy sources. One such substitute is ammonia. Ammonia is currently
undergoing development and research due to its less visible presence in the
energy landscape. Additionally, hydrogen is being explored as a replacement for
natural gas, but it is still in the developmental stages. (Informant 04)
We can gain a better
understanding of these new technologies and ensure that our human resources
comprehend them to harness their potential in the future for the energy
transition at IUC.. (Informant 12)
In addition to technical
competencies, soft skills such as critical thinking, business savvy, learning
agility, and adaptability to new technologies are identified as necessities for
facing the energy transition. Employees are expected to adapt to new business
models and possess critical thinking and business acumen. To develop these
competencies, informants suggest the implementation of training and voluntary
programs, especially those related to renewable energy and energy transition.
This is considered crucial as there are still positions that have not been
widely covered by training related to renewable energy.
Challenges
in Developing Employees in the Era of Energy Transition
The
second discovery arising from this study pertains to the challenges encountered
by IUC in its current employee development initiatives during the energy
transition period. Substantiated by identified challenges, including the
unreliable nature of hard competency assessments, a predominant focus on
structural or talent candidates in soft competency evaluations, and the
organization's workforce preparedness for achieving Net Zero Emissions (NZE),
the study exposes the obstacles IUC faces in its employee development
endeavors. Notably, the challenges encompass issues related to the evaluation
and assessment of employee competencies, with a particular emphasis on the
uneven distribution of competency development programs across the entire
workforce.
Yes, indeed, the
self-assessment method can be considered measurable. However, its measurement
accuracy may be relatively low. (Informant 01)
Well, in UPAC currently, the
assessments are primarily focused on leadership. So, it seems that the
functional needs haven't been fully captured in the matrix (Informant 08)
Several
participants conveyed that, in the course of employee development, IUC
confronts significant hurdles. One such challenge pertains to the assessment of
employee competencies, specifically the subjective nature of evaluations and
the existing disparities in competency development programs among employees.
Furthermore, the study explores the strategies implemented by IUC to enhance
employee competencies, ensuring their ability to seamlessly transition into
roles that align with IUC's goal of achieving Net Zero Emissions (NZE).
Presently,
IUC employs hard competency assessments for employees designated as Key
Position Employees (KPE). KPEs encompass individuals holding positions crucial
to the direct realization of IUC's strategic themes and plans. The assessment
procedure involves self-evaluations by employees regarding their competencies,
subsequently validated by their immediate superiors. This process is
instrumental in identifying competency gaps and determining suitable
development programs such as certifications, training, field assignments, and
those aligned with employee aspirations.Nevertheless, concerns have been raised
by some participants regarding the subjective nature of self-assessment, with
potential implications for the objectivity of evaluations conducted by superiors.
Additionally, not all employees undergo hard competency assessments,
particularly those not classified as KPEs in their respective units, resulting
in potential gaps in competency mapping and development programs.
Regarding
soft competency assessments, IUC conducts evaluations for employees in
structural roles or those aspiring to such positions. The Unit Pelaksana
Assessment Center (UPAC), under IUC Pusdiklat, oversees these assessments,
primarily focusing on leadership roles such as supervisors and managers at
various levels, encompassing five distinct roles.
The
readiness of IUC employees to support the company's energy transition strategy
is explored through the COLONY (Collaboration Learning and Innovation
Opportunity) program. COLONY aims to prepare and reinforce the capacities of
human resources to acquire new competencies and technologies, particularly
those associated with renewable energy. Serving as a talent tagging function,
the program identifies and nurtures employees possessing competencies vital for
IUC's future requirements. Despite the initiation of the COLONY program, it was
revealed that IUC employees are presently inadequately prepared for the energy
transition. Many lack competencies associated with renewable energy,
necessitating upskilling and collaboration with external experts or institutions
with expertise in renewable energy. Current employee development primarily
targets talents identified through an Individual Development Program (IDP),
leaving non-talent employees without such developmental plans.
Framework
Competencies needed by employees related to renewable energy
The
initial findings reveal that IUC employees require a competency framework
related to renewable energy to face the energy transition. This is supported by
the statements of the majority of informants indicating that IUC needs new
competencies or future competencies related to the transition to renewable
energy. This is due to the fact that currently, most IUC employees lack these
competencies, and IUC also faces a shortage of experts with comprehensive
understanding of energy transition and renewable energy. Notably, the
interesting aspect uncovered by the research is that most informants emphasize
the need for specific technical competencies for positions that will be
affected by the energy transition.
The
identified competencies include technical competencies related to renewable
energy sources in power generation and technologies associated with the energy
transition. Competencies related to renewable energy sources encompass
Hydro/Water, Hydrogen, Ammonia, Biomass, Solar, Wind, and Geothermal, which
will be used as energy sources in power generation. Additionally, competencies
related to technologies associated with the energy transition include CCUS
(Carbon Capture, Utilization, and Storage), BESS (Battery Energy Storage
System), Co-Firing, and operation of systems based on renewable energy
generation. Other competencies with relevance to renewable energy or energy
transition include Energy Transition Management and Carbon Footprint & Net
Zero Management, as well as Climate Change Management.
These
competencies fall into the categories of technical competencies and critical
competencies. Critical competencies are behaviors specific to a job within a
job family (Salman et al.,
2024). Technical competencies are
considered critical competencies because they are highly specific and essential
for the success of particular tasks or roles. The emergence of competencies
more inclined toward critical and technical competencies among the informants
is attributed to the nature of these competencies. Technical competencies are
more tangible and visible, unlike soft competencies that are intangible and
concealed, as depicted by the iceberg model popularized by Spencer &
Spencer (1993).
Critical Competencies
Some
technical competencies related to renewable energy sources mentioned by most
informants are already included in IUC's existing competency directory. For
instance, Hydro is defined as a competency in the operation and maintenance of
hydropower plants, while Solar is defined as a competency in the operation and
maintenance of solar power plants. Similarly, Biomass, Wind, and Geothermal are
defined as competencies in the operation and maintenance of biomass, wind, and
geothermal power plants, respectively. However, competencies related to
Hydrogen and Ammonia, which are anticipated to be used as substitutes for
fossil fuel-based power plants, are not yet included in IUC's competency
directory. Hydrogen, in particular, is considered crucial in the transition to
renewable energy due to its potential applications in various sectors such as
electricity generation, heating, industry, transportation, and energy storage
(IUC, 2023). Ammonia, besides being used as a source of renewable energy, can
also be used in Co-Firing with coal-fired power plants. Additionally,
competencies related to emerging renewable energy technologies like rooftop PV
are not yet captured in IUC's competency requirements, despite rooftop PV being
the fastest-growing renewable energy source in the past five years, according
to data from the IEA and IRENA in 2022.
Furthermore,
several competencies related to RE (Renewable Energy) are identified, such as
the development of RE power plants, operation and maintenance management of RE
power plants, long-term planning of RE generation systems, and expertise in RE.
An additional competency that should be considered is RE energy planning, given
that the existing competency directory includes primary energy planning for
coal, gas, and oil, which may become less prevalent or even a minority in the
era of energy transition.
Technical
competencies related to technology associated with renewable energy, such as
CCUS, BESS, Co-Firing, and the operation of RE generation systems, are not yet
present in IUC's existing competency directory. CCUS and BESS are new
technologies currently under development to reduce carbon emissions. CCUS
involves capturing carbon dioxide emissions from fossil fuel power plants and
storing or utilizing them to prevent their release into the atmosphere. BESS,
on the other hand, is a storage system designed to reduce carbon emissions from
intermittent renewable energy sources such as solar and wind, ensuring the
reliability of RE-based power systems.
The
significance of acquiring BESS competencies, as highlighted by informants, is
supported by various studies emphasizing the relevance of BESS in the
transition to renewable energy. BESS is recognized for its significant
contributions to supporting the grid, optimizing energy production, enhancing
load balancing, environmental sustainability, and improving overall power
quality and system reliability (Cai & Li,
2021; Eskandari et al., 2022; Sadhukhan & Christensen, 2021; Zhuo, 2018). CCUS
is acknowledged as a key strategy in climate change mitigation, providing
benefits in resource conservation and carbon emissions reduction. Therefore,
informant statements affirming the need for IUC employees to understand and
learn about CCUS align with these perspectives (Mac Dowell et
al., 2017). Co-Firing, also known as
the process of blending RE sources such as biomass and ammonia with fossil fuel
power plants to reduce carbon emissions, is identified as a crucial competency
for IUC employees. This is particularly relevant for those working in
coal-fired power plants, as Co-Firing is a performance target set by the
government for IUC to achieve a 23% share of RE in the energy mix by 2025 (IUC,
2022). Operation of RE generation systems is also identified as a critical
competency for IUC employees holding positions such as transmission system
operators and dispatchers. This competency is crucial for maintaining the
reliability of IUC's power system when intermittent renewable energy sources,
such as solar and wind, become the base load in a region. Moreover,
competencies related to the management of energy transition, such as energy
transition management, carbon footprint & net-zero management, and climate
change management, are identified. Energy transition management and carbon
footprint & net-zero management are new competencies emerging from
informant statements, while climate change management is already accommodated
in the existing competency directory.
Soft Competencies
In
addition to the technical competencies outlined by the majority of informants,
there are also soft competencies required for IUC employees to be prepared for
the transition to clean energy. These include critical thinking, adaptability
to new technologies, business savvy, and learning agility. Learning agility
refers to the capacity and willingness to acquire new skills to perform well in
dynamic or challenging situations (DeRue et al.,
2012). Learning agility involves
proactively seeking new knowledge and applying it in unique or unfamiliar
situations (Lee &
Song, 2022). It is associated with the
ability to quickly adapt and gain knowledge from experiences, demonstrating a
combination of competency and enthusiasm for knowledge acquisition (Lee &
Song, 2022). Learning agility is
particularly crucial for IUC employees, considering that, during this energy
transition, they may lack an understanding of certain new technologies. This
necessitates upskilling in the field of renewable energy, as the current expertise
of IUC employees is predominantly in fossil fuel power plants such as
coal-fired power plants.Adaptability to new technologies is a competency of
utmost importance for IUC employees due to the multitude of new technologies
that have already emerged and will continue to emerge during the transition to
clean energy. As these technologies mature and become more cost-effective in
the future, IUC employees need to be ready to adopt and implement them. This
aligns with research indicating that adaptability to new technologies is a
critical factor for future success. Competencies related to information and
communication technologies (ICT) are essential for various jobs related to
renewable energy, such as solar energy engineers and wind turbine technicians, requiring
adaptability and the ability to adapt to technological change (Arcelay et al.,
2021).Digital adaptability, introduced by Puckett, (2022),
emphasizes the importance of strategies and learning skills to effectively
engage with new technologies. The OECD (2016) also underscores the significance
of having skills for adaptation and learning about technological changes.
Critical
thinking is identified as a necessary competency, supported by literature
emphasizing its importance in facing upcoming business challenges. Critical
thinking skills, encompassing reflective and independent thinking, information
analysis and evaluation, and decision-making based on rational considerations,
are considered essential for addressing complex and ever-changing challenges in
the business world (Calma &
Davies, 2021; Pacheco-Velázquez et al., 2023). In
the context of the energy transition, Arcelay et al.,
(2021) stress that critical
thinking is a future competency required for all jobs related to the renewable
energy sector. The need for critical thinking is also acknowledged by
informants who state that when IUC faces situations related to renewable
energy, which were previously unfamiliar in handling a power system dominated
by renewable energy, employees must be able to identify, evaluate, and solve
associated problems. This includes tasks such as creating daily, weekly,
monthly, and yearly operational plans when intermittent renewable energy
sources become the base load in a region. Critical thinking is complemented by
a deep understanding of business, commonly referred to as business savvy.
Business savvy is the ability to recognize and thoroughly understand the
business environment in which an organization operates. It involves a
comprehensive understanding of customers, competitors, industry trends, and
regulatory changes that could potentially impact the company's activities (Conger &
Fulmer, 2003). The importance of business
savvy is recognized by IUC itself, as it is included in the existing competency
directory. However, it is currently specified as a behavior competency that
must be possessed by employees in upper management positions and Functional 1
roles within specific business streams. Notably, it is absent from business
streams related to renewable energy and energy transition. Business savvy
should ideally be a competency for employees across all levels, especially in
streams related to renewable energy, given the strategic importance of this
competence in identifying and addressing future business challenges.
Upon
identifying these competencies, the next step involves analyzing and
synthesizing them to develop a competency framework guideline for IUC regarding
the energy transition to renewable energy. These competencies will be
categorized into new competencies mentioned by informants, combined with
existing competencies in the competency directory, and aligned with the energy
transition strategies outlined by informants. The framework will delineate
competencies into critical competencies (technical), generic competencies
(soft), and core competencies, with the latter being mandatory for all IUC
employees. The framework will be designed by examining the energy transition
strategies, which include decarbonization, the development of RE power plants
and their support systems, and additional considerations for energy transition
management. Competencies within each strategy will be mapped out, and the
framework will distinguish between Key Position Employees (KPE) and non-KPE
employees, considering the diverse skill requirements at different
organizational levels. KPEs are defined as employees holding positions that
directly support the achievement of IUC's strategic themes and plans, such as
those in distribution, transmission, and generation functions.
Table 2 Framework Competencies for Renewable Energy
|
Business Process |
Competencies |
||
|
Critical Competencies |
Core Competencies |
Generic Competencies |
|
|
Ammonia Co Firing |
Ammonia Co-Firing
Operation |
Adaptability |
Adaptability of New
Technology |
|
Ammonia Production
Management |
Building Trust |
Business Savvy |
|
|
Collaboration |
Critical Thinking |
||
|
Continuous Learning |
Learning Agility |
||
|
Customer Expereince Excellence |
|
||
|
Biomass Co-firing |
Biomass Co-Firing
Operation |
Adaptability |
Adaptability of New
Technology |
|
Biomass Management |
Building Trust |
Business Savvy |
|
|
Collaboration |
Critical Thinking |
||
|
Continuous Learning |
Learning Agility |
||
|
Customer Expereince Excellence |
|
||
|
Hydrogen Management |
Hydrogen Co-Firing
Operation |
Adaptability |
Adaptability of New
Technology |
|
Green Hydrogen Production |
Building Trust |
Business Savvy |
|
|
Collaboration |
Critical Thinking |
||
|
Continuous Learning |
Learning Agility |
||
|
Customer Expereince Excellence |
|
||
|
Carbon Capture,
Utilization, and Storage |
CCUS Planning |
Adaptability |
Adaptability of New
Technology |
|
CCUS Operation and
Maintenance |
Building Trust |
Business Savvy |
|
|
Collaboration |
Critical Thinking |
||
|
Continuous Learning |
Learning Agility |
||
|
Customer Expereince Excellence |
|
||
|
Renewable Energy Planning |
Renewable Energy Planning |
Adaptability |
Adaptability of New
Technology |
|
Renewable Energy Plant
Development |
Building Trust |
Business Savvy |
|
|
Operation Planning of
Electricity System Based on NRE Plants |
Collaboration |
Critical Thinking |
|
|
Continuous Learning |
Learning Agility |
||
|
Customer Expereince Excellence |
|
||
|
Hydro Powerplant |
Water Type Management |
Adaptability |
Adaptability of New
Technology |
|
Operation and Maintenance
of Hydropower |
Building Trust |
Business Savvy |
|
|
Collaboration |
Critical Thinking |
||
|
Continuous Learning |
Learning Agility |
||
|
Customer Expereince Excellence |
|
||
|
Solar Powerplant |
Operation and Maintenance
of Solar Power Plant |
Adaptability |
Adaptability of New
Technology |
|
Rooftop Solar PV
Installation |
Building Trust |
Business Savvy |
|
|
Maintenance of Rooftop
Solar Power Plant |
Collaboration |
Critical Thinking |
|
|
Rooftop Solar Energy
Management |
Continuous Learning |
Learning Agility |
|
|
Customer Expereince Excellence |
|
||
|
Wind Powerplant |
Wind Farm Operation and
Maintenance |
Adaptability |
Adaptability of New
Technology |
|
Building Trust |
Business Savvy |
||
|
Collaboration |
Critical Thinking |
||
|
Continuous Learning |
Learning Agility |
||
|
Customer Expereince Excellence |
|
||
|
Geothermal Power Plant |
Geothermal Exploration |
Adaptability |
Adaptability of New
Technology |
|
Geothermal Exploitation |
Building Trust |
Business Savvy |
|
|
Operation and Maintenance
of Geothermal Power Plant |
Collaboration |
Critical Thinking |
|
|
Continuous Learning |
Learning Agility |
||
|
Customer Expereince Excellence |
|
||
|
Baterry Energy Storage System |
BESS Energy Reserve
Planning |
Adaptability |
Adaptability of New
Technology |
|
Operation and Maintenance
of BESS |
Building Trust |
Business Savvy |
|
|
Collaboration |
Critical Thinking |
||
|
Continuous Learning |
Learning Agility |
||
|
Customer Expereince Excellence |
|
||
|
Renewable Energy
Engineering |
Engineering of Renewable
Energy Generating Machine |
Adaptability |
Adaptability of New
Technology |
|
RE Electrical System
Engineering |
Building Trust |
Business Savvy |
|
|
RE Testing |
Collaboration |
Critical Thinking |
|
|
Continuous Learning |
Learning Agility |
||
|
Customer Expereince Excellence |
|
||
|
Energy Transition Management |
Energy Transition
Management |
Adaptability |
Adaptability of New
Technology |
|
Building Trust |
Business Savvy |
||
|
Carbon Footprint and Net
Zero Management |
Collaboration |
Critical Thinking |
|
|
Continuous Learning |
Learning Agility |
||
|
Customer Expereince Excellence |
|
||
(Source: Processed by
Researcher, 2023)
Challenges
in Developing Employees in the Era of Energy Transition
The
Second Finding reveals that there are several challenges in developing
employees in this energy transition era that could hinder IUC in achieving the
Net Zero Emission 2060 target. Although IUC is currently implementing a
capacity-building program for its employees to prepare them for the transition
to clean energy, there are potential factors that may confine IUC employees to
performing and maintaining business-as-usual competencies, rendering them
unable to adapt to evolving business conditions, both internal and external.
Presently,
IUC employees are accustomed to and possess profound expertise in
business-as-usual practices, specifically in electricity generation processes
using fossil fuels as the primary energy source for electrifying Indonesia.
Consequently, when the Indonesian government and IUC set a target of 23%
Renewable Energy Mix by 2025 and net zero emissions by 2060, IUC employees are
not adequately prepared to shift their competencies towards clean energy.
Additionally, there is a need for upskilling, acquiring new skill sets, and
implementing learning programs in collaboration with experts or institutions
with profound knowledge of renewable energy and energy transition. This aligns
with the International Energy Agency's (IEA) statement in 2022 that targeted upskilling
or reskilling programs for existing workforce will be critical during this
energy transition. In line with the findings from BP's 2021 annual and
sustainability reports, BP has initiated the X-Academy program to assist its
employees in developing skills relevant to the future energy system, including
the low-carbon economy and renewable energy domains. This involves utilizing
skill projections and capability plans to support recruitment decisions,
designing career paths, and offering development programs for employees
interested in transitioning to new job families.
Based
on statements from various sources, IUC is currently developing and
implementing a capacity-building program for its employees called
"Colony." Colony is designed to prepare and strengthen human
resources to respond to and adopt new competencies and technologies. The
program emphasizes enhancing the capacity and skills of IUC employees, with a
primary focus on energy transition, encompassing competency learning related to
renewable energy such as hydro, solar, geothermal, and more. Through Colony,
efforts are made to identify, group, and assess employees who have undergone
development and demonstrated interest in the same core competencies. The
critical aspect here is how the knowledge transfer or sharing process can be
effectively executed when employees who have completed the Colony program can
add value to the company and the surrounding environment. Moreover, when IUC
recruits experts to provide insights to its employees in a short time frame,
methods or approaches need to be applied to ensure that the knowledge is
transferred, shared, and ingrained in the understanding of the employees
receiving the knowledge from the experts. IUC should also be cautious not to
deprive certain employees of equal opportunities to participate in the Colony
program. Some employees may have an interest in energy transition but may lack
a background or position related to it, preventing them from joining the
program.
This
research also reveals that the hard competency assessment system is still
unreliable and its validity is questionable. This is attributed to the use of
self-assessment methods for hard competency evaluation, where the employee
determines their own competency level. This is supported by previous research
indicating that self-assessment validity is often questioned, leading to
overestimation and unreliability, especially for specific and non-general
competencies (Ahmed et al.,
2011; Andrade, 2019; Ballantine et al., 2007; Ghaderi et al., 2015; Ross, 2019). Even
though the self-assessment results are later validated by immediate
supervisors, bias may still occur due to subjectivity and the supervisor's
competency in the assessment. As supervisors climb the hierarchy, they tend to
have better soft competencies than hard competencies. The purpose of the
assessment is to identify competency gaps in employees and determine their
existing capabilities for development needs. Therefore, when self-assessment is
performed, potential errors may arise, hindering an accurate measurement of the
employee's competency gap. Hence, there is a need for an assessment tool
capable of comprehensively and validly measuring employees' technical
competencies to determine their competency levels, guiding IUC in developing
appropriate employee development programs. Beyond the mentioned challenges,
currently, only KPE employees are mandated to undergo hard competency
assessments. KPE employees hold positions directly supporting IUC's strategic
themes and strategies, such as those in power generation, transmission,
distribution, construction, and commerce (aligned with IUC's core business).
KPE employees are also required to have certifications to support and prove
their capabilities in their respective functions. Interestingly, non-KPE
employees are not subjected to competency gap identification assessments,
despite their critical roles in enabler functions, including HR, Finance,
Legal, IT, Procurement, and others, supporting IUC's strategic plans.
Therefore, IUC still needs to assess the technical competencies of non-KPE
employees in enabler functions to determine their competency levels and
identify any existing gaps, considering alignment with IUC's strategic themes
and each unit's goals.
IUC has
conducted soft competency assessments for its employees to measure their
readiness and suitability for occupying a position. Currently, soft competency
assessments focus on leaders/potential leaders and are conducted on
structural/employees entering the talent pool. Employees categorized to enter
the talent pool and occupy structural positions fall into the promotable/high
potential category. To be in this category, employees must consistently achieve
optimal performance levels or be assessed as having very potential performance
levels or above. Employees who have undergone assessments will be informed of
their assessment scores through the Catalyst application or conveyed by their
immediate supervisors. It is important to note that IUC currently implements a
Force Distribution Ranking System (FDRS) to determine the performance scores of
its employees. Moon et al., (2016) describe FDRS as a performance assessment
system requiring supervisors to allocate a percentage of employees into
specific categories based on their relative performance compared to colleagues.
In summary, Armstrong, (2022)
further emphasizes that the effectiveness of the FDRS method depends on
employees' understanding of the expectations placed on them, fair procedures
for assessing and classifying performance levels, and employee trust in their
supervisors using this procedure fairly to evaluate their performance. However,
the application of FDRS carries certain risks, including the emergence of
perceptions of injustice among employees, especially when supervisors must
identify employees considered more outstanding than others within a team.
Furthermore, FDRS may lead to dysfunctional competition, disrupting team
dynamics as employees may prioritize personal performance achievements and
potentially impede the performance of their colleagues (Moon et al.,
2016). This has become a
complaint among IUC employees, where the imposed "quota" system may
potentially hinder their career development or promotion. The application of
FDRS also results in some IUC employees with good performance and excellent soft
competencies not being assessed because their performance assessment only falls
into the potential level. Therefore, IUC should conduct periodic soft
competency assessments for all employees at all levels to focus on leadership
assessments and functional assessments. This is essential to identify
competency gaps and determine suitable soft competency development programs to
enhance the soft competencies of employees, especially key competencies and
role competencies that all employees must possess when at their respective job
levels.
The
findings from this research support several studies analyzing the impact of
employee competencies in the context of energy transition. Various studies have
highlighted the implications of human capital during this transitional period. Bano et al., (2018) found
that human capital influences gas emissions, where an individual's increased
knowledge and skills can reduce emissions. Employees with high skills and
competencies can positively contribute to driving green technology development
and sustainable innovation through their technical knowledge and skills (Siedschlag et
al., 2019). Another study by Fytili &
Zabaniotou, (2022) emphasized that skill and
knowledge development plays a crucial role in supporting energy transition.
Facing the challenges of energy transition, Arcelay et al., (2021) noted that the success of the renewable
energy sector depends heavily on the need for a workforce with skills and
adaptability to rapid changes.
Conclusion
This study aims to explore the competencies required by employees
of IUC (Indonesia's state-owned electricity company) in the context of
renewable energy and to identify challenges in developing their competencies
during the energy transition towards Net Zero Emission by 2060. Employing a
qualitative approach with a case study method, this research reveals two main
findings.irst, concerning the "Competency Framework," the study
identifies critical and generic competencies necessary for IUC employees
involved in renewable energy. The competency framework is structured for two
types of employees, namely Technical Employees (KPE) and Non-Technical
Employees, involving technical aspects such as ammonia co-firing, biomass
co-firing, hydrogen co-firing, CCUS, and other renewable energy technologies.
Meanwhile, generic competencies encompass adaptability to new technologies,
business acumen, critical thinking, and learning agility.Second, regarding
"Employee Development Challenges," the research highlights issues in
both soft and hard competency assessments, particularly in the context of
self-assessment, which is deemed to have low validity and reliability. The
implementation of FDR (Forced Distribution Ranking) is also assessed to
introduce unfairness in employee performance evaluations. Although IUC has
launched a capacity-building program named Colony, its success will heavily
depend on the effectiveness of the knowledge transfer process. Therefore,
effective strategies and methods are required to ensure that acquired knowledge
adds value to the company.
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Copyright
holder: Sandy Febrian Robiady,
Riani Rachmawati (2024) |
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First
publication right: Syntax Literate: Jurnal Ilmiah Indonesia |
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