Malaysia’s 4 GW / 5.12 GWh Renewable Hub Secures World Bank Backing

The World Bank Group (WBG), through its private sector arm, the International Finance Corporation (IFC), Permodalan Darul Ta’zim (PDT) — the investment arm of Johor State — and Ditrolic Energy have agreed to jointly develop the Southern Johor Renewable Energy Corridor (SJREC).

In a press release, the International Financial Corporation (IFC) said, "The 2,000-square-kilometer hybrid solar and battery energy storage zone in Johor can supply clean electricity to support the state’s industrial development and facilitate cross-border electricity trade under the ASEAN Power Grid (APG) initiative."

IFC said the $6 billion project will generate clean electricity to meet the renewable energy needs of local and multinational corporations, including hyperscale data-center operators, manufacturers, and other businesses in Johor, which is emerging as a major industrial and digital hub in Southeast Asia.

Developed as a key component of the Johor–Singapore Special Economic Zone (JS-SEZ) masterplan, the initial phase of SJREC is expected to include up to 4 gigawatts peak (GWp) of solar capacity and 5.12 gigawatt-hours of energy storage capacity on a 10,000-acre site.

The official announcement and agreement exchange were witnessed by Her Majesty Raja Zarith Sofiah, Queen of Malaysia, highlighting royal and governmental support for Johor’s clean energy transformation and cross-border cooperation with Singapore.

The World Bank has previously financed a renewable energy project with IFC to help set Eswatini on the path to universal energy access by 2030. The Accelerating Sustainable and Clean Energy Access Transformation (ASCENT) project will support the country in reaching the remaining 12% of the population without electricity, ensuring that households in the most remote and disadvantaged areas gain improved access to energy and greater economic opportunities.

Leadership View

The project will also enable clean electricity transmission to Singapore, supporting the broader APG initiative, ASEAN’s collective effort to connect the region’s electricity networks and strengthen energy cooperation by 2045.

On the latest project funding, Dato’ Ramlee bin A Rahman, President and Group Chief Executive of Permodalan Darul Ta’zim, said, “The Southern Johor Renewable Energy Corridor (SJREC) was conceived as the cornerstone of this policy, specifically Strategy 1, to unlock the immense solar potential of the Kota Tinggi and Mersing districts.

About The Collaboration

The  collaboration follows the recent launch of the ASEAN Power Grid Financing (APGF) initiative,  a flagship regional effort to support the APG by mobilizing large-scale financing for cross-border power interconnections across land and on the seabed. APGF is led by the Association of Southeast Asian Nations and the ASEAN Center for Energy and coordinated by the World Bank Group and the Asian Development Bank.

“By partnering with global leaders like IFC and Ditrolic Energy, we are operationalizing the SJREC not only to power the Johor-Singapore Special Economic Zone (JS-SEZ), but to actively facilitate cross-border energy trading. This project confirms Johor’s readiness to serve as a primary renewable energy hub for the ASEAN Power Grid, realizing the vision we set forth for a sustainable, high-growth future.”

The project is expected to generate significant economic benefits for the region by creating an estimated 125,000 jobs through the construction, operations, and maintenance of renewable-energy infrastructure, enabling industrial expansion, and attracting high-quality, foreign-direct investment.”