Johor, IFC and Ditrolic Launch Major 2,000-Sq-Km Renewable Energy Corridor

The SJREC is a flagship project under the Johor Green Development Policy 2030 and a central pillar of the Johor–Singapore Special Economic Zone (JS-SEZ) masterplan.

Johor is set to become one of Southeast Asia’s most important clean-energy hubs following the launch of the Southern Johor Renewable Energy Corridor (SJREC)—a vast 2,000 km² hybrid solar and battery energy storage zone designed to power industrial growth, support Malaysia’s energy transition, and unlock large-scale cross-border electricity trade under the ASEAN Power Grid (APG) initiative.

The landmark collaboration brings together the World Bank Group (WBG) through its private-sector arm, the International Finance Corporation (IFC), Permodalan Darul Ta’zim (PDT)—Johor’s strategic investment arm—and Ditrolic Energy, one of Malaysia’s leading integrated renewable-energy companies. The agreement was signed alongside the launch of the Johor Renewable Energy Policy 2030, reflecting the state’s ambition to transform itself into a regional clean-energy powerhouse.

A Cornerstone of Johor’s Green Development Vision

The SJREC is a flagship project under the Johor Green Development Policy 2030 and a central pillar of the Johor–Singapore Special Economic Zone (JS-SEZ) masterplan. In its first phase, the corridor will include:

• Up to 4 GWp of solar photovoltaic (PV) capacity

• 5.12 GWh of battery energy storage capacity

• A development footprint of 10,000 acres

With an estimated investment of USD 6 billion, the project will generate clean, reliable electricity to support multinational corporations, hyperscale data-centre operators, advanced manufacturers, and the fast-growing digital economy of Johor—now one of Malaysia’s most dynamic industrial hubs.

The corridor will also enable surplus renewable electricity to be exported to Singapore, supporting long-term bilateral grid integration and contributing directly to the ASEAN Power Grid (APG), a regional initiative aimed at interconnecting national grids across Southeast Asia by 2045.

Unlocking Johor’s Solar Potential

PDT President and Group Chief Executive Dato’ Ramlee bin A Rahman said the project marks a major milestone in realising Johor’s green-industrial future:

“The SJREC was conceived as the cornerstone of our renewable-energy strategy. By partnering with global leaders like IFC and Ditrolic Energy, we are operationalizing this vision—not just to power the Johor–Singapore SEZ but to serve as a renewable-energy hub for the ASEAN Power Grid.”

The corridor will tap into the immense solar potential of the Kota Tinggi and Mersing districts, regions well suited for high-capacity solar deployment due to land availability, solar irradiation levels, and proximity to industrial zones and transmission networks.

A Catalytic Project for Jobs, Investment and Industrial Growth

Beyond the energy sector, the SJREC is expected to deliver far-reaching economic benefits:

• 125,000 jobs created across construction, operations and maintenance

• Expanded industrial capacity for new and existing sectors

• Greater foreign direct investment (FDI) into Johor’s renewable-energy and manufacturing ecosystems

• Opportunities for local SMEs to participate in supply-chain activities

As Southeast Asia becomes a global hub for data centres, semiconductors, electric vehicle supply chains and advanced manufacturing, access to low-cost renewable energy will be a decisive competitive advantage for Johor.

A Milestone for Malaysia’s Renewable-Energy Leadership

Tham Chee Aun, CEO of Ditrolic Energy, emphasized the company’s commitment to developing Johor as a major clean-energy exporter:

“Our 4GWp solar-plus-storage catalytic development will anchor Johor’s clean-energy export potential. Ditrolic is deeply committed to contributing back to our home state by powering industries with renewable, low-cost energy.”

Ditrolic Energy, founded in Johor, has grown into one of Malaysia’s largest renewable-energy developers with a portfolio across Asia. The SJREC represents one of the nation’s largest ever solar-plus-storage initiatives.

IFC and the World Bank: Mobilizing Global Financing

The collaboration also aligns closely with the ASEAN Power Grid Financing Initiative (APGF)—a flagship regional effort led by ASEAN and the ASEAN Centre for Energy, and coordinated by the World Bank Group and Asian Development Bank. APGF aims to mobilize large-scale financing for cross-border grid interconnections, including submarine cables and transmission infrastructure.

Judith Green, WBG Country Manager for Malaysia, highlighted the broader significance:

“Not only will this project support Johor’s sustainable development ambitions, it will also create jobs, attract investment, and facilitate clean-energy trade between Malaysia and Singapore, strengthening the ASEAN Power Grid.”

The World Bank Group’s involvement signals strong international confidence in Johor’s potential as a renewable-energy hub.

High-Level Support From Malaysia’s Royal Household

The agreement signing was witnessed by Her Majesty Raja Zarith Sofiah, Queen of Malaysia, underscoring national commitment to Johor’s clean-energy transformation and deepening cooperation with Singapore in the field of sustainable power.

Royal endorsement also highlights the political and societal importance of the renewable-energy transition in achieving Malaysia’s broader climate and economic goals.

Accelerating a Regional Energy Future

The Southern Johor Renewable Energy Corridor marks a major step toward integrated, low-carbon energy systems across Southeast Asia. By enabling cross-border power flows, strengthening grid reliability, and attracting green industries, the SJREC is poised to become:

• A cornerstone of Malaysia’s renewable-energy ambitions

• A strategic asset for the Johor–Singapore economic corridor

• A catalyst for ASEAN’s long-term energy security and emissions reduction goals

As construction and development progress, the SJREC stands to reshape Johor’s economic landscape, transforming the region into a leading clean-energy and industrial hub for the next generation.