The World Bank Group (WBG), through its private sector arm, the International Finance Corporation (IFC), has joined hands with Permodalan Darul Ta’zim (PDT), the strategic investment arm of the Johor State Government, and Ditrolic Energy to develop the Southern Johor Renewable Energy Corridor (SJREC). This large-scale initiative aims to power Johor’s industrial growth with clean energy and support the ASEAN Power Grid (APG) by enabling future cross-border electricity trade.
The SJREC will span a 2,000-square-kilometre area in southern Johor and is planned as a hybrid renewable energy zone combining solar power and battery energy storage. The collaboration agreement was signed during the launch of the Johor Renewable Energy Policy 2030, outlining joint efforts in project development, technical assistance, and potential financing. The initiative is aligned with the goals set under the Johor Green Development Policy 2030.
As part of the Johor–Singapore Special Economic Zone (JS-SEZ) masterplan, the first phase of the SJREC will include up to 4 gigawatts peak (GWp) of solar capacity and 5.12 gigawatt-hours of battery storage. The $6 billion development will be built across 10,000 acres and is designed to supply clean electricity to major industrial users such as data centres, manufacturers, and global corporations operating in Johor—now one of Southeast Asia’s rising industrial and digital hubs. The project will also support the transmission of clean power to Singapore, advancing the APG’s long-term mission to connect electricity systems across ASEAN by 2045.
Dato’ Ramlee bin A Rahman, President and Group Chief Executive of Permodalan Darul Ta’zim, said the project marks a significant milestone for Johor. He noted that the SJREC was envisioned as a central pillar of the state’s green development policy, especially in unlocking the solar potential of Kota Tinggi and Mersing. He added that partnering with IFC and Ditrolic Energy allows Johor to transform its strategy into real progress while positioning the state as a key renewable energy hub for the ASEAN Power Grid.
The SJREC is expected to deliver major economic benefits. Around 125,000 jobs are projected to be created through construction, operations, and long-term maintenance. The availability of clean electricity will also help attract high-value foreign investments and support the expansion of local industries. Tham Chee Aun, Chief Executive Officer of Ditrolic Energy, said the project marks an important achievement for Johor and Malaysia. As one of Malaysia’s largest renewable energy developers, Ditrolic Energy stated that its 4 GWp solar-plus-storage contribution will anchor Johor’s clean energy export capabilities and supply reliable renewable power to industries across the region.
The announcement comes shortly after the launch of the ASEAN Power Grid Financing (APGF) initiative, which aims to mobilise large-scale financing for cross-border electricity connections—both over land and undersea. The initiative is coordinated by the World Bank Group and the Asian Development Bank alongside ASEAN and the ASEAN Center for Energy. Judith Green, the World Bank Group’s Country Manager for Malaysia, said the partnership with PDT and Ditrolic Energy represents a significant opportunity for Johor.
She highlighted that the project will not only support Johor’s sustainable development goals but also help create jobs, attract investment, and facilitate clean electricity trade between Malaysia and Singapore, contributing to the broader ASEAN Power Grid vision. The agreement signing was witnessed by Her Majesty Raja Zarith Sofiah, Queen of Malaysia, reflecting strong national and royal support for Johor’s clean-energy transition and its growing collaboration with Singapore in the renewable energy sector.
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