Abstract:

This study investigates the interaction and dynamics between regulatory agencies and businesses in the context of developing the Philippine renewable energy sector using the perspectives and experiences of selected industry managers. Primary data were gathered through in-depth interviews with seven industry managers – three project developers of hydroelectric and geothermal plants, a managing director of a supply firm for renewable energy sources, and three executive secretaries from various renewable energy developers. The study analyzes the institutional arrangements for renewable energy development, particularly the pertinent legislations that were enacted since the restructuring of the electric power industry in 2001. Furthermore, using the interview data, the author probes into the interaction and dynamics between regulators and businesses, as well as issues, obstructions and constraints that were identified by the interviewees in developing the Philippine renewable energy sector. The study concludes, focusing on the effects of transaction costs and political connections on the future of the renewable energy sector in the Philippines.