With Philippine industries struggling under one of Asia’s highest electricity prices—averaging about 18 US cents/kWh, Sweden is positioning itself as a key technology partner to help manufacturers cut energy costs and raise competitiveness.
At the Swedish Perspectives in Energy Efficiency forum in Manila, Swedish tech leaders SKF and Atlas Copco showcased solutions designed to help Philippine factories modernize operations, reduce power consumption, and extend equipment life.
Swedish Ambassador Anna Ferry framed the partnership as both economic and strategic.
“Energy efficiency is a critical factor for competitiveness and resilience. Sweden’s experience shows that industrial modernization and sustainability can go hand in hand. We are long term partners with the Philippines sharing this expertise,” she said.
A study by Business Sweden shows the Philippines’ industrial sector, particularly food and beverage and manufacturing, accounts for around 80% of industrial energy use, making it the country’s largest untapped opportunity for efficiency upgrades.
Despite strong policies under the Energy Efficiency and Conservation Act, adoption has been slow due to financing gaps and fragmented demand. Swedish firms said they can help address these hurdles through investment-grade audits, aggregated procurement, and financing models tied to power savings.
Representing Swedish industry, SKF’s Jesus Christopher Chan noted that customer expectations have evolved.
“Today, customers care for more than financial gains and Return On Investment—they expect integrated solutions that reduce energy use, extend equipment life, and support circularity, helping them achieve both performance and sustainability goals,” he said.
Atlas Copco’s George Lapat echoed this, saying, “Adapting our solutions to deliver value by embedding sustainability and circularity and aligning our goals to the customer’s own sustainability journey creates lasting partnership and impact.”
Government, industry push ‘green shift’ in procurement
Officials from the Department of Energy (DOE) and the Philippine Energy Efficiency Alliance stressed the need to embed sustainability in both public and private procurement.
“The Department of Energy is steadfast in driving energy efficiency as a national priority… but real impact comes when government and industry work hand in hand to implement solutions on the ground,” said DOE Director Patrick Aquino.
Alliance president Alexander Ablaza emphasized the crucial role of energy service companies, saying, “Energy Service Companies are the backbone of the efficiency market. They bring technical expertise and financing solutions, allowing businesses to pay for upgrades through the savings they generate.”
Sweden invests 3.5% of its GDP in R&D, 70% of which comes from the private sector, fueling global leadership in clean energy, mobility, and industrial efficiency technologies. Through Team Sweden initiatives, Stockholm aims to deepen its role in the Philippines’ decarbonization and competitiveness agenda.
Sweden and the Philippines have maintained diplomatic ties since 1947, with trade, investment, and sustainable development forming a growing pillar of cooperation.