Malaysia to Develop $6 Billion Renewable Energy Corridor

Malaysia has signed a collaboration agreement with the World Bank Group to develop the Southern Johor Renewable Energy Corridor (SJREC), a landmark project valued at 6 billion USD.

The agreement—finalized on Monday—brings together the International Finance Corporation (IFC), Permodalan Darul Ta’zim (the Johor state government’s strategic investment arm), and Ditrolic Energy. According to a joint statement, the 2,000 sq km hybrid solar and battery energy storage zone in Johor is designed to supply clean power for the state’s industrial expansion and support the ASEAN Power Grid through future cross-border electricity trade.

Signed alongside the launch of the Johor Renewable Energy Policy 2030, the collaboration outlines cooperation on project development, technical expertise, and potential financing.

As a central pillar of the Johor–Singapore Special Economic Zone master plan, the first phase of SJREC will feature up to 4 GWp of solar capacity and 5.12 GWh of energy storage across a 10,000-acre site.

Judith Green, the World Bank Group’s country manager for Malaysia, said the project will advance Johor’s sustainable development goals, generate employment, attract foreign investment, and enable clean energy exchange between Malaysia and Singapore.