Malaysia’s plan to develop a massive renewable energy zone in southern Johor aims to deliver its first domestic power by 2028, with exports to Singapore starting the following year. The Southern Johor Renewable Energy Corridor (SJREC) is a hybrid solar and battery storage zone designed to establish the state as a regional hub for clean electricity.
The initiative is a 15-year renewable energy development along Johor’s east coast, backed by the state’s investment arm, Permodalan Darul Ta’zim (PDT), along with Ditrolic Energy and the International Finance Corporation (IFC). Ditrolic Energy Holdings Sdn Bhd, through its subsidiary Southern Solar Alliance Pte Ltd, secured a conditional approval from Singapore’s Energy Market Authority (EMA) to supply up to 600 megawatts (MW) of renewable energy from Johor to Singapore.
According to the statement, the project is scheduled to sign its first batch of power purchase agreements with local buyers within the next three months. Once those agreements are finalized, the SJREC expects to provide domestic green electricity as early as 2028. Exports to Singapore are targeted to begin in 2029, subject to regulatory and technical approvals in both nations.
While the project focuses initially on domestic supply and Singaporean imports, it also envisions a broader capacity of about four gigawatts-peak (GWp) of solar and storage capacity. This includes 5.1 gigawatt-hours (GWh) of utility-scale battery storage, intended to supply energy-intensive industries such as data centres and high-tech manufacturing in the Johor-Singapore Special Economic Zone (JS-SEZ).
Market demand and infrastructure goals
Ditrolic Energy noted that close to 90% of the planned energy output has already attracted offtake interest from Singapore-based users. These potential buyers span various sectors, including transport, airport and port operations, manufacturing, pharmaceuticals, logistics, and real estate.
“This approval is an important milestone for the company and reflects strong confidence in the technical robustness, scale and reliability of our energy import project under the SJREC platform,” said Ditrolic Energy group CEO Tham Chee Aun.
For investors and regional planners, the corridor represents a shift toward decentralized power generation that ties into cross-border infrastructure. The reliance on battery storage suggests a strategy to manage supply variability, ensuring that the flow of electricity remains steady even when solar generation dips during cloudy periods or at night. This technical layer is essential for meeting the strict reliability standards required by high-demand sectors like airport operations and data centers, where even momentary outages can disrupt complex supply chains.
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Datuk Ramlee Rahman, CEO of PDT, said SJREC is being developed to position Johor as a “global-scale renewable energy hub” supplying clean electricity for both domestic consumption and exports. “With this first phase progressing under EMA’s conditional approval, we are advancing the critical infrastructure needed to underpin the Johor-Singapore Special Economic Zone,” he said.
Regional planners view the project as a significant step toward integrating renewable sources into cross-border energy grids. The inclusion of battery storage allows the system to store excess solar power during the day for use during peak hours or when generation is low. This capability supports the stability needed for high-demand sectors like data centers, which require uninterrupted power to function.
Permodalan Darul Ta’zim (PDT) emphasizes that the SJREC will help establish Johor as a key player in the regional energy market. By combining solar generation with storage, the project addresses the intermittency issues often associated with renewable sources. This approach ensures a consistent supply of power for both local industries and neighboring Singapore.
Establishing a reliable energy supply is critical for the growth of the Johor-Singapore Special Economic Zone. The project aims to support data centers and high-tech manufacturing by providing a stable source of green electricity. This infrastructure is vital for attracting investments in energy-intensive industries.
AI costs are expected to drop as wider use increases, which may further lower operational expenses for data centers and other energy-intensive users in the region.
The development of the Southern Johor Renewable Energy Corridor marks a significant milestone in Malaysia’s renewable energy strategy. By leveraging solar power and battery storage, the project aims to provide a stable and clean energy supply for both domestic and international markets. This initiative supports the broader goals of the Johor-Singapore Special Economic Zone and enhances the region’s position as a global-scale renewable energy hub.
