SJREC’s Phase I is planned to include 4 GW solar and 5.12 GWh storage capacity development on a 10,000-acre site in Johor, Malaysia
The project aims to supply clean power locally, enable exports to Singapore, and support ASEAN Power Grid goals
The collaboration will explore development and financing, with expectations of adding around 125,000 jobs
The World Bank has put its weight behind what is being touted as one of the world’s largest renewable energy corridors – the Southern Johor Renewable Energy Corridor (SJREC). In the initial phase, it is expected to comprise up to 4 GW of solar and 5.12 GWh of energy storage capacity on a 10,000-acre site in Malaysia.
Part of the Johor-Singapore Special Economic Zone (JS-SEZ) masterplan, the SJREC is a 2,000 km² hybrid solar and battery energy storage system (BESS) zone in Johor that will power the region’s industrial development with clean electricity. It is aligned with the Johor Green Development Policy 2030.
This $6 billion project in Johor will supply clean power to local and multinational companies, including data-center operators and manufacturers, as the state grows into a major industrial and digital hub. It will also transmit renewable electricity to Singapore and support the ASEAN Power Grid (APG) by facilitating cross-border electricity trade.
International Finance Corporation (IFC), the World Bank’s private sector arm, has now joined hands with the strategic investment arm of the Johor State Permodalan Darul Ta’zim (PDT) and local integrated energy company Ditrolic Energy for this project.
“Our 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,” said Ditrolic Energy’s CEO Tham Chee Aun.
Under the collaboration agreement signed between the trio, they plan to jointly explore project development, technical support, and potential financing of the SJREC project. It is expected to generate close to 125,000 jobs through the construction, operations, and maintenance of renewable energy infrastructure. The state also anticipates it to attract high-quality foreign direct investment (FDI).
The project will also boost Malaysia’s overarching target to achieve a 70% renewable energy share in its electricity mix by 2050, which will incur an investment of MYR 637 billion (see Malaysia Announces New Renewables Target).