PVTIME – The World Bank has announced a $6 billion investment in the Southern Johor Renewable Energy Corridor, a 4GW, 5.12GWh development co-driven by the International Finance Corporation (IFC), Johor’s investment agency PDT, and the local energy firm Ditrolic Energy. This investment is a key milestone in the implementation of the ASEAN Power Grid initiative.
Spanning approximately 2,000 square kilometres in Johor, the project will deploy large-scale solar and energy storage facilities, focusing on unlocking the solar potential of the Kota Tinggi and Mersing districts. As a core component of the Johor-Singapore Special Economic Zone masterplan, the project is set to become Southeast Asia’s leading clean power hub, supplying electricity directly to energy-scarce Singapore via cross-border transmission infrastructure.
According to Singapore’s Energy Market Authority, the city-state aims to import 6GW of low-carbon power by 2035, meeting one-third of its energy needs. According to an IFC representative, the project’s affordable renewable electricity will cater to both Johor’s local businesses and the region’s ultra-large data centres and manufacturing sectors, aligning with Johor’s shift towards high-efficiency energy solutions, following the ban on low-performance data centres.
As a central node in the ASEAN Power Grid, the corridor supports the recent joint financing initiative for the power grid, launched by the ADB and World Bank. ASEAN’s cross-border interconnection capacity currently stands at 7.7GW, and is targeted to double by 2040, with the Southern Johor project providing critical support. Tan Chee Ann, CEO of Ditrolic Energy, highlighted that Johor-based enterprises will leverage the corridor to enhance their clean energy export capabilities, thereby strengthening the region’s industrial low-carbon transition.
Industry analysts have noted that the integration of solar storage addresses the volatility of renewable energy, helping Malaysia to meet its 2030 renewable power targets while diversifying Singapore’s energy imports. The project’s progress marks a significant milestone in regional energy cooperation in Southeast Asia, providing a key model for the ASEAN $764 billion grid development plan.
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