Johor, Ditrolic Energy partner World Bank’s IFC to develop US$6 billion solar-and-storage hub to power JS-SEZ
The project is expected to generate 125,000 jobs and enable renewable-energy transmission to Singapore
[KUALA LUMPUR] The International Finance Corporation (IFC), Johor’s investment arm Permodalan Darul Ta’zim (PDT), and Malaysia-based integrated energy company Ditrolic Energy have teamed up to build a US$6 billion solar-and-storage corridor, aimed at powering Johor’s next phase of industrial expansion.
In a joint statement on Tuesday (Nov 25), the three organisations said they signed a collaboration letter on Monday, in conjunction with the launch of the Johor Renewable Energy Policy 2030. IFC is the World Bank Group’s private-sector arm. The move also marks the shift from long-term planning to project execution.
The Southern Johor Renewable Energy Corridor (SJREC) will be a 2,000-square-kilometre hybrid solar and battery energy-storage system zone. It is expected to be a core pillar of the state’s Green Development Policy 2030, as well as the Johor-Singapore Special Economic Zone (JS-SEZ) master plan.
In its initial phase, the project will cover a 10,000-acre (4,407-hectare) site, including up to 4 gigawatt-peaks (GWp) of solar capacity and 5.12 gigawatt hours of battery-storage capacity.
The SJREC is designed to supply clean electricity to multinational manufacturers, data-centre operators and other fast-growing industries that are propelling Johor’s rise as a regional industrial and digital hub.
In addition, one of its key objectives is to enable renewable-energy transmission to Singapore, supporting the Asean Power Grid – the region’s long-term push to integrate power networks and enhance energy security.
The SJREC is expected to generate about 125,000 jobs through construction, operations and maintenance, while catalysing new industrial and investment activity in the southern part of the state.
The partnership follows the roll-out of the Asean Power Grid Financing Initiative, which was coordinated by the World Bank Group and Asian Development Bank to mobilise large-scale funding for cross-border interconnections.
Ramlee Rahman, president and group chief executive of PDT, said the SJREC was conceived as a cornerstone of the Johor Green Development Policy 2030, to unlock the immense solar potential of the Kota Tinggi and Mersing districts.
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He added: “By partnering global leaders like IFC and Ditrolic Energy, we are operationalising the SJREC not only to power the JS-SEZ, but to actively facilitate cross-border energy trading.”
Ditrolic Energy group CEO Tham Chee Aun said the initiative is both commercially transformative and locally significant. “Our 4-GWp solar-plus-storage development will anchor Johor’s clean-energy export potential and support industries seeking renewable, low-cost power.”
Ditrolic Energy is one of the largest South-east Asian integrated energy companies, delivering total clean utilities based primarily on solar energy to various industries.
World Bank Group’s Malaysia country manager Judith Green noted the corridor supports both national and regional priorities. “This project will create jobs, attract foreign investment and facilitate clean-energy trade between two key Asean economies.”
The signing ceremony was witnessed by Queen of Malaysia Raja Zarith Sofiah, underscoring the strong royal and governmental backing for Johor’s clean-energy transition and growing cooperation with Singapore.
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