Malaysia’s 4 GW / 5.12 GWh solar-plus-storage complex gets World Bank funding

A massive $6 billion renewable energy project in Malaysia is a step closer to reality, following a collaboration announcement and investment agreement from the World Bank. The site will form part of a Southeast Asian power grid initiative and further connect to Singapore to facilitate cross-border electricity trade.

While the final scope hasn’t been announced, the initial sizing of the scheme is for a 2,000 square kilometre hybrid solar and battery energy storage system zone, with some 10,000 acres set for the initial phase of the project. This initial phase was said to be “expected” to include up to 4 GWp of solar capacity and 5.12 GWh of energy storage capacity.

The ‘Cooperation Document’ exchanged by key parties, including the Johor state, also brought together many initiatives. One is a pan-Southeast Asian grid initiative, dubbed the ASEAN Power Grid or APG, that aims to connect Malaysia’s Johor region with Singapore as part of a Johor–Singapore Special Economic Zone (JS-SEZ) masterplan and facilitate cross-border electricity trade.

It is also part of the Johor Renewable Energy Policy 2030, which details in an outline joint efforts across project development, technical support, and further potential financing for the project, and ties into the stated ambitions of the Johor Green Development Policy 2030.

There are some surprises in the details of the players involved.

Other investors, alongside the World Bank’s private sector arm known as the International Finance Corporation (IFC), included the strategic investment arm of the Johor State Permodalan Darul Ta’zim (PDT), and Ditrolic Energy, an independent clean energy company in Southeast Asia, headquartered in Malaysia. No funding splits or details were announced at a ceremony attended by officials and dignitaries, including the Queen of Malaysia, Raja Zarith Sofiah.

While likely to offer attractive renewable energy for the city-state of Singapore, the announcement also detailed that Johor is aiming to attract both manufacturing and hyperscale data center operators. Some 125,000 jobs were said to be created through the lifecycle of the project.

One of the surprise players is Ditrolic Energy, which according to ESS News information, has only 300 MW of active projects built, making this project dwarf its other engagements.

Exchanging of Cooperation Document between Dato’ Haji Ramlee Bin A Rahman, President and CEO of PDT (third from right), Victoria Delmon, Upstream Manager, Infrastructure, Asia, IFC (third from left) and Tham Chee Aun, Group CEO of Ditrolic Energy (second from left), witnessed by the Chief Minister of Johor, Dato’ Onn Hafiz Bin Ghazi (second from right), State Secretary, Dato’ Haji Asman Shah Bin Abd Rahman (left) and Dato’ Hasni bin Mohammad, Chairman of Johor Sustainability Centre. Image: IFC

What they said:

Dato’ Ramlee bin A Rahman, President and Group Chief Executive of PDT: “As the state agency entrusted to formulate the Johor Green Development Policy 2030, PDT is proud to witness our strategic framework transition into tangible reality today. “The Southern Johor Renewable Energy Corridor (SJREC) was conceived as the cornerstone of this policy, specifically Strategy 1, to unlock the immense solar potential of the Kota Tinggi and Mersing districts.

“By partnering with global leaders like IFC and Ditrolic Energy, we are operationalizing the SJREC not only to power the Johor-Singapore Special Economic Zone (JS-SEZ), but to actively facilitate cross-border energy trading. This project confirms Johor’s readiness to serve as a primary renewable energy hub for the ASEAN Power Grid, realizing the vision we set forth for a sustainable, high-growth future. The project is expected to generate significant economic benefits for the region by creating an estimated 125,000 jobs through the construction, operations, and maintenance of renewable-energy infrastructure, enabling industrial expansion, and attracting high-quality, foreign-direct investment.”

Judith Green, World Bank Group Country Manager for Malaysia: “We are delighted to partner with Permodalan Darul Ta’zim and Ditrolic Energy on this innovative project. Not only will this project support the broader sustainable development ambitions of Johor, it will also create jobs, potentially attract foreign direct investment, while facilitating cross-border clean energy trade between two key ASEAN economies, bolstering the broader ASEAN Power Grid initiative.”

Tham Chee Aun, Chief Executive Officer of Ditrolic Energy: “We are proud to partner with the Johor State Government and the largest global development institution focused on the private sector, IFC, in this historic initiative. As a Johor-born company that has expanded across Asia and become one of Malaysia’s largest developers, Ditrolic is deeply committed to contributing back to our home state. Our 4GWp solar-plus-storage catalytic development within the SJREC will anchor Johor’s clean energy export potential and provide a foundation for industries seeking renewable, low-cost power in the region.”

Greening Singapore’s grid

Singapore’s relative lack of land to develop large-scale energy projects has led to somewhat of a boom in ideas, concepts, and projects to supply the region.

Among the list of developments and hopefuls are a recently announced 900 MW solar and 1.2 GWh battery project in Indonesia, where 400 MW (AC) is slated for export to Singapore.

In Australia, AAPowerLink, which is a part of SunCable’s flagship development, aims to build some nearly 20GW of solar capacity and deliver it to Singapore via a 4,300 km subsea HVDC transmission cable through Indonesian waters, and aims to offer an eventual supply of up to 6 GW of “24/7 green electricity to industrial customers in Darwin and Singapore”. The company is targeting a final investment decision in 2027.