Together, Permodalan Darul Ta’zim, Ditrolic Energy, and the World Bank Group’s International Finance Corp. decided to build one of the biggest clean-power corridors in the world in Johor, marking a major step for Malaysia in its efforts to scale renewable energy.

Under the ASEAN Power Grid plan, the partners seek to boost cross-border electricity commerce while providing renewable energy to the state’s rapidly expanding sectors.

Two thousand square km will make up the Southern Johor Renewable Energy Corridor. At the Johor Renewable Energy Policy 2030 unveiling, the agreement was signed. With ambitions for up to 4 gigawatt-peak solar output and 5.12 gigawatt-hours of storage, the first phase is situated on a 10,000-acre plot of land.

The $6 billion project will help Malaysia’s industrial growth and satisfy growing demand from manufacturers, data centres, and other major customers. Additionally, it would bolster Malaysia’s position in ASEAN’s broader grid integration by improving clean power flows to Singapore.

Johor wants to establish itself as one of Southeast Asia’s leading industrial and digital hubs. Renewable energy capability, according to officials, will help the state attract international investment. Johor is implementing its plan, according to Dato’ Ramlee A. Rahman, president and group CEO of PDT. He remarked, “We are proud to see our framework become reality.” He stated that the Johor Green Development Policy 2030 is based on the corridor.

He stated that Kota Tinggi and Mersing’s solar potential will be unlocked by the collaboration with IFC and Ditrolic. Additionally, it will facilitate trade in renewable energy between Singapore and Malaysia through the ASEAN Power Grid. Approximately 125,000 jobs in construction, operations, and maintenance could be created by the project. As the availability of renewable energy increases, state leaders anticipate robust industrial growth and increased international investment.

According to Ditrolic Energy CEO Tham Chee Aun, the initiative represents a significant milestone for Malaysia. According to him, the company will use a 4 GWp solar-plus-storage project to anchor Johor’s clean energy export potential. The partnership comes after ASEAN launched its Power Grid Financing programme to facilitate significant regional interconnections. The programme is coordinated by the Asian Development Bank and the World Bank Group.

The project is in line with the country’s goals for sustainable growth, according to Judith Green, the World Bank Group’s country manager for Malaysia. According to her, it will facilitate commerce in renewable energy between Malaysia and Singapore while attracting investment and job creation.

The event was observed by Malaysia’s queen, Raja Zarith Sofiah, demonstrating the country’s strong support for the country’s shift to renewable energy.