World Bank enters into deal to develop $6b RE corridor in Malaysia

The initial phase will include 4 GWp of solar capacity and over 5 GWh of power storage.

World Bank, through its private sector arm the International Finance Corporation (IFC), has inked a collaboration with Permodalan Darul Ta’zim (PDT), the strategic investment arm of the Johor State, and Ditrolic Energy to develop the $6b Southern Johor Renewable Energy Corridor (SJREC).

According to IFC, the hybrid solar and battery energy storage system zone is a key component of the Johor–Singapore Special Economic Zone and aligns with the ambitions of the Johor Green Development Policy 2030.

“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,” said Dato’ Ramlee bin A Rahman, president and group chief executive of Permodalan Darul Ta’zim.

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 project will generate clean electricity to meet the renewable energy 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 initiative, ASEAN’s collective effort to connect the region’s electricity networks and strengthen energy cooperation by 2045.

This development follows the 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.