The World Bank Group’s International Finance Corporation, Permodalan Darul Ta’zim, and Ditrolic Energy have entered into a partnership to develop one of the world’s largest renewable energy corridors in Johor, Malaysia. The Southern Johor Renewable Energy Corridor will cover 2,000 square kilometers and will integrate large-scale solar power and battery energy storage. This major project aims to support industrial development in Johor with clean energy and contribute to the ASEAN Power Grid initiative, which seeks to enable electricity trade across Southeast Asian countries.

The agreement was signed during the launch of the Johor Renewable Energy Policy 2030. The collaboration defines efforts in project development, technical cooperation, and potential financing to bring the renewable energy corridor to reality. The initiative also supports the Johor Green Development Policy 2030 and is designed as an essential part of the Johor–Singapore Special Economic Zone masterplan.

In the first phase, the corridor is expected to deploy up to four gigawatts peak of solar capacity along with 5.12 gigawatt hours of battery energy storage. The development will be located on a 10,000-acre site and will require an investment of around six billion US dollars. The clean power produced will support both local and multinational industries operating in Johor, including hyperscale data centers, manufacturing units, and other businesses. Johor is rapidly becoming a major industrial and digital hub in Southeast Asia, and this project will help meet the increasing demand for renewable power.

The project will also help to transmit clean energy to Singapore, supporting cross-border energy exchange. This aligns with the broader goals of the ASEAN Power Grid, which aims to interconnect the region’s electricity networks and strengthen energy cooperation by 2045. Through this effort, Johor aims to position itself as a leading renewable energy hub within the region.

Dato’ Ramlee bin A Rahman, President and Group Chief Executive of Permodalan Darul Ta’zim, expressed pride in seeing the Johor Green Development Policy transition into real action. He said that the renewable energy corridor was planned as a core component of the policy, focusing on unlocking solar potential in the Kota Tinggi and Mersing districts. By partnering with IFC and Ditrolic Energy, the project is advancing towards providing clean energy to the Johor-Singapore economic zone and enabling cross-border energy trading. He highlighted Johor’s readiness to contribute substantially to the ASEAN Power Grid vision.

The project is expected to create significant economic opportunities with an estimated 125,000 job opportunities across construction, operations, and maintenance activities. It will also help to attract foreign investment and support industrial growth.

Tham Chee Aun, Chief Executive Officer of Ditrolic Energy, said the partnership marks a major milestone for Johor and Malaysia. As a local company that has become one of Malaysia’s largest renewable energy developers, Ditrolic is committed to contributing to its home state. He noted that the four-gigawatt solar and storage development will anchor Johor’s clean energy export capacity and offer industries access to affordable renewable energy.

The collaboration follows the introduction of the ASEAN Power Grid Financing initiative, launched to mobilize financing for regional power interconnections. Judith Green, World Bank Group Country Manager for Malaysia, said the project will support sustainable development goals, attract investment, generate employment, and strengthen cross-border clean energy cooperation.

The agreement signing was witnessed by Her Majesty Raja Zarith Sofiah, Queen of Malaysia, showing strong national support for Johor’s renewable energy advancement and collaboration with Singapore.