From currents to controversies: Unveiling performances of and perceptions on China's investments in the Philippine grid

Abstract

The electrical grid system is a technology and a complex amalgamation of various factors, including geography, relationships, institutions, and socio-political-economic influences. Although China's involvement in international grids has primarily been analysed from the political economy perspective, little attention has been given to its impact on the electricity systems of host countries and how it affects their performance. This article addresses this gap by combining insights from international relations, political economy, and electricity systems transitions to analyse databases, news accounts and interview data on the performance and perceptions of energy actors regarding China's involvement in the Philippine electricity grid. Dissatisfaction with delays in project implementations, declining contributions to the development of in-house technological capabilities of the national grid company and transmission lines, diversification of local economic elites and oligarchs, and a lack of transparency have intensified mutual distrust between the Chinese grid company and prominent energy actors in the Philippines and failed to mitigate national security concerns. Our findings imply that changes in the constellation of local energy actors amid the electricity sector reform and integration of renewable energy in grids affect the role of the grid and justification for international grid investors. The perception of unsatisfactory performances raises concerns about national security during the worsening of bilateral relations.

Keywords

• Electrical grid system
• China's investments
• Philippines
• National security
• Incentive compatibility