World Bank, Ditrolic forge partnership with Johor to develop US$6b renewable energy corridor

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

KUALA LUMPUR (Nov 25): The World Bank Group has entered into a partnership with Johor and Ditrolic Energy to develop the Southern Johor Renewable Energy Corridor (SJREC), a project valued at US$6 billion (RM24.83 billion).

The collaboration was formalised through a letter signed by the International Finance Corporation (IFC), the World Bank's private sector arm, Johor's investment arm Permodalan Darul Ta’zim (PDT), and Ditrolic. The signing coincided with the launch of the Johor Renewable Energy Policy 2030.

The policy outlines joint efforts across project development, technical and financing for the project, which spans a 2,000 sq km hybrid solar and battery energy storage system zone in Johor.

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 four gigawatts peak (GWp) of solar capacity and 5.12 gigawatt hours of energy storage capacity on a 10,000-acre site. 

The project will generate clean electricity to meet the renewable energy (RE) needs of local and multinational corporations, including hyperscale data-centre operators, manufacturers, and other businesses in Johor, which is emerging as a key industrial and digital hub in Southeast Asia. 

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

"This project confirms Johor’s readiness to serve as a primary renewable energy hub for the Asean Power Grid, realising the vision we set forth for a sustainable, high-growth future,” said Datuk Ramlee A Rahman, president and group chief executive of Permodalan Darul Ta’zim in a statement.

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 RE infrastructure, enabling industrial expansion, and attracting high-quality, foreign-direct investment.

Based in Johor, Ditrolic Energy is a renewable energy company set up in 2009 with a portfolio of 300 megawatts of commercial, industrial and government projects across Southeast Asia and South Asia, according to its website.

Tham Chee Aun, chief executive officer of Ditrolic Energy, said its 4GWp solar-plus-storage catalytic development within the SJREC will "anchor Johor’s clean energy export potential and provide a foundation for industries seeking renewable, low-cost power in the region”.

The collaboration follows the recent launch of the Asean Power Grid Financing (APGF) initiative, a flagship regional effort to support the APG by mobilising 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.

Judith Green, World Bank Group country manager for Malaysia. “Not only will this project support the broader sustainable development ambitions of Johor, it will also create jobs, potentially attract foreign direct investment, while facilitating cross-border clean energy trade between two key Asean economies, bolstering the broader Asean Power Grid initiative.”

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

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