Crisabel M. Tiongson

Powering Investments: POE KEY TO ENERGY SUSTAINABILITY ALAMANO l DEGADO l TIONGSON STATEMENT OF THE PROBLEM This research entitled, “Powering Investments: Key to Energy Sustainability,” aims to know the schemes or strategies that are applied by top local companies in the energy sector, which is the top invested sector in the country, to attract Foreign Direct Investment (FDI). It aims to know how the increase of FDI in the energy sector can help develop the renewable energy base of the country and how it can all affect sustainable energy in the Philippines. 1. What are the strategies used or applied by local energy companies to attract foreign direct investment in the energy sector? 2. How does the increase of foreign direct investment affect the gradual shift of the country to renewable energy sources? 3. How does the improvement of the country’s renewable energy sources can contribute to the achievement of sustainable energy in the Philippines? SIGNIFICANCE OF THE STUDY This research provides information on the strategies used by top local energy companies to attract Foreign Direct Investments (FDI). It will offer an understanding of how the FDIs are utilized by the local companies to develop the power generation in the Philippines especially in venturing into renewable energy. Furthermore, it will shed light on how the gradual shift to renewables help in the achievement of sustainable energy in the Philippines. ASSUMPTION It is assumed, therefore, that high foreign direct investment in the energy sector is due to the specific strategies that are employed by local companies. Furthermore, it is assumed that most of these investments are geared towards renewable energy and that the shift to renewables will be the way for attaining energy sustainability in the country OPERATIONAL DEFINITIONS Local Company An establishment or institution, based in the Philippines, which provides energyrelated services to the local population. Foreign Direct Investment An investment made by a company or individual of a foreign country to energy sector businesses in the Philippines Energy Sector Companies or industries that are focused on supplying or distributing energy. This also includes gas, oils and renewable energy resources. Renewable Energy Energy from a source that is naturally replenished, that is not depleted when used. Energy Sustainability The ability of the Philippines to reduce energy imports, make energy cost-effective and make the country self-supporting in energy sources. THEORETICAL FRAMEWORK Sustainable Development Theory Investments Development Renewable Energy Interconnection among three pillars of Sustainable Development METHODOLOGY Research Design • Qualitative Method ➢ Primary Data: Content Analysis ➢ Secondary Data: Semi-Structured Interview Research Participants • According to the list of the Bureau of Investments the top energy companies in terms of FDIs ➢ Aboitiz Power Corporation, Manila Electric Co. (Meralco), DMCI Power Holdings, Semirara Corporation, Alsons Consolidated Resources Inc, Energy Development Corporation, Trans-Asia Oil and Energy Corporation,, Global Business Power Corporation, JG Summit and AES Philippines. Data Gathering Procedure ✓ Face to face Semi-structured interview ✓ Online inquiry DATA, RESULTS, ANALYSIS • Energy Security and Development in the Philippines • Installed Capacity to Meet Energy Demand Figure 2. Total Final Energy Consumption by Sectoral Share by 2030 Agriculture Sector Commercial Sector Household Sector Percentage Share Residential Sector Transport Sector - Source: Philippine Energy Plan- 40 • Investments to Power the Energy Sector Figure 3. The Philippine Energy Mix in 2016 • Gradual Shift to Renewable Energy Oil Based Natural Gas Percentage Share Renewal Enegy Coal- Source: 2016 Philippine Power Statistics, Department of Energy DATA, RESULTS, ANALYSIS Figure 4. Sources of Renewable Energy as of 2016 Biomass Wind Solar Percentage Share Hydro Geothermal 0 3.5 7 10.5 14 Source: 2016 Philippine Power Statistics, Department of Energy Figure 5. Awarded RE Projects in 2016 Ocean Geothermal Wind Percentage Share Biomass Solar Hydro 0 125 Source: Department of Energy 250 375 500 CONCLUSION/RECOMMENDATION 1. To discover the strategies used or applied by local energy companies to attract foreign direct investment. Economic Factor (Increase in Energy Demand brought by Economic Growth) Shift from Coal-Based to Renewable Energy Sources Performance of Local Energy Companies Foreign Partnership History of Local Energy Companies Corporate Social Responsibility Activities of Local Energy Companies Interactions During International Energy Events Trade Missions Source: Content Analysis &Interview 2. To know how the increase of foreign direct investment affects the gradual shift of the country to renewable energy. CONCLUSION 3.To know how the improvement of the country’s renewable energy sources can contribute to the achievement of sustainable energy in the Philippines RECOMMENDATION ✓ Future research is recommended to determine what type of renewable energy source receives the most foreign investment ✓ More respondents