Discussing Clean Energy Mandates and Incentives
The opportunities provided by clean energy technologies and infrastructure for motion-picture production is a central topic at each Sustainable Production Forum (SPF).
In previous articles, we highlighted how studios and productions can engage and work with their supply chain to achieve measurable carbon reduction outcomes. We also noted the opportunities to accelerate clean energy solutions that have emerged through cooperating and collaborating with municipalities. In this article, we explore some of the push and pull opportunities for clean energy technology provided through mandates or incentive mechanisms.
Financial Incentives for Clean Energy
Financial incentives can take on various forms and are an effective tool to encourage a shift to new processes or technologies. Such incentives from governments, for instance, help build a business case for cleantech development and rentals. Providing permit discounts and other financial incentives has been a valuable step in developing clean energy infrastructure for some jurisdictions.
In a previous “Clean Energy Cities” panel, Geoff Teoli (Vancouver Film Office) shared that vendors and suppliers “have said that [Vancouver’s] incentive program has helped them build that business case, ‘cause we’ve now put a dollar value on the use of that equipment,” and that productions are using the incentives to “argue a business case to the producers and the studios to go out and rent the clean energy equipment.”
Any incentives that ease the financial burden of adopting new cleantech could help productions accelerate down that path.
Incentive programs can also apply to the cleantech development industries. In a “Driving Innovation'' panel, Aravind Kailas (Volvo) shared that because medium- and heavy-duty EVs are still a new technology, the up-front costs will be high and “our asks have primarily been incentives for vehicles, incentives for infrastructure, and then some other market [incentives]” from governments. Any incentives that ease the financial burden of adopting new cleantech could help productions accelerate down that path.
But incentives for productions may not be necessary in some jurisdictions. In the “Clean Energy Cities” panel, Bobby Donches (City of Toronto) noted that in Toronto, they saw that “a lot of productions were using electric vehicles as part of their fleet. They don’t have to, they didn’t do it for any incentives or anything like that, but they wanted to, so we’re definitely seeing an interest.” Mary Anne Waterhouse (Producer) explicitly shared that interest in “The Irrefutable Business Case” panel, saying that “as a producer, I don’t need another tax credit to convince me that I need to do this [shift to clean energy]. I need the infrastructure to be available.” Even in jurisdictions that use them, financial incentives are not the end of the line. Teoli shared more about Vancouver’s process, saying that, “at some point in time, everyone should qualify for the incentive, [so] it’s not an incentive anymore. [...] we’ll probably start to rebalance that where we do have regulations” that would require productions to use grid tie-ins. Whether jurisdictions decide to use financial incentives as a stepping stone in their clean infrastructure development or not, SPF panelists agree that the government has to put the infrastructure in place.
SPF panelists agree that the government also has to put [clean energy] infrastructure in place.
One barrier which is often noted is that film and TV productions have specific energy demands. These demands often require productions to take power sources with them on location. Too often, this energy has been supplied through the use of two or more portable diesel generators (or other fossil fuels).
A single generator typically consumes approximately 20 litres (5.28 US gallons) of diesel per hour, costing roughly $25.82 CAD or $19.40 USD (based on 2021 average diesel prices). Two generators running for 12 hours in a single production day could burn 480 litres of diesel at a cost of $620 CAD or $465.67 USD. In the UK, two generators running for 12 hours are found to use an average of 80 litres and cost about 56 pounds ($96.31 CAD).
A shift towards clean energy infrastructure on location, such as portable battery power stations and electrical grid tie-ins, helps productions take time off of their generators thereby saving money as well as reducing greenhouse gas (GHG) emissions. Cost savings are accrued by productions whereas GHG savings are sought by governments and industries alike. By clearly signaling a desire for clean energy solutions and access to infrastructure, the entertainment industry can lead the way for collective benefit.
By clearly signaling a desire for clean energy solutions and access to infrastructure, the entertainment industry can lead the way.
Productions and Governments Can Mandate for Clean Energy
Mandates from both productions and governments were also seen as an important part of the clean energy development process. When we think of mandates, we usually think of governments providing official directions or orders to businesses and the public. In a past “Driving Innovation” panel, Kent Rathwell (Sun Country) acknowledged that governments want clean energy solutions, but are often pulled in many directions. He shared his perspective that “one of the fastest ways for governments to do things is just to mandate it and then let everyone else figure out how to hit those targets.”
Productions also have the power to mandate for change. In the “Getting to 2030! No Excuses!” panel, Michelle Jenkins (Film London) said that “we need the real forthright willingness coming up to the producer and above-level, to be absolutely committed and crack the whip on productions.” Kent echoed this sentiment in saying that when producers mandate clean energy, “you’ve drawn the line in the sand as the industry.” By drawing this line and creating mandates and targets for clean energy, productions and governments can accelerate the development of clean energy technology and infrastructure.
By creating mandates and targets for clean energy, productions and governments can accelerate the development of clean energy technology and infrastructure.
Mandates need to be considered in their local contexts and make realistic targets for the industry. These approaches will likely change depending on the regional approach to clean energy. In a “Clean Energy Cities” panel, Bobby Donches (City of Toronto) said that “regulatory environments have a good way of making everyone move a little faster, which is a great thing, especially in this context,” but added that “unless technologies are available, on the market for local industries to engage with and then reduce emissions, it [government] can’t really impose such restrictions.” Whether an official mandate is in order or not, it is still important for productions to communicate their intentions to use clean energy, and collaborate with governments and vendors to achieve their targets.
Conclusion
Incentives and mandates from government and productions certainly have a place in developing clean energy tech and infrastructure. Jurisdictions may use an incentive program to support the business case for developing cleantech and renting it for use on productions. Mandates from governments can create a regulatory environment that encourages cleantech development and use. From productions and production companies, mandates can also help drive vendors to invest in cleantech. However, it is important to remember that there are multiple avenues for implementing clean energy targets, and the important piece is to start.
This article was informed by discussions between experts and panelists at SPF21, notably during the “Getting to 2030! No Excuses!” and “Clean Energy Cities” panels. Stay tuned as the industry continues to plug in to clean energy in the coming years.
Did you miss the chance to attend our past SPF event, but would like to see the discussions? Green Spark Group has released all sessions on its YouTube channel. Please dive in and catch them all! As ever, please reach out to us with any comments or questions at hello@sustainableproductionforum.com.
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