Against the backdrop of accelerating clean energy interconnectivity in Southeast Asia, Johor, Malaysia has welcomed a landmark energy infrastructure project. On December 1, 2025, the World Bank announced its investment in a solar energy storage complex project in Malaysia with a capacity of 4GW/5.12GWh - the South Johor Renewable Energy Corridor. The total investment of this project is about 6 billion US dollars, jointly promoted by the International Finance Corporation, Johor state investment institution PDT, and energy company Ditronic Energy, marking substantial progress in the ASEAN Power Grid Plan in regional energy cooperation.

Building a regional clean energy hub

The South Johor Renewable Energy Corridor plans to construct large-scale solar and energy storage facilities in an area of approximately 2000 square kilometers, which will become an important clean power production base in Southeast Asia after completion. This project is specifically included in the overall plan of the Johor Singapore Special Economic Zone, which can supply clean energy to Singapore, where electricity is scarce, through a cross-border transmission system. It directly supports Singapore's strategy of diversifying energy imports and also provides stable renewable energy electricity for local and multinational enterprises in Johor.

Integrate into the ASEAN regional power grid system

This project is an important component of the ASEAN Power Grid Plan, reflecting the shared vision of Southeast Asian countries to strengthen energy interconnectivity. This corridor will fully develop the solar energy resources in the Kota Kinabalu and Fengsheng Port areas, promoting the development of local green industries. The International Finance Corporation stated that after the completion of the project, it will provide cost competitive renewable electricity to ultra large data center operators, manufacturing enterprises, etc., to meet the continuously growing energy demand in the digital economy era.

Assist regional energy transformation and digital economy development

Against the backdrop of data centers becoming a key driving force for global electricity demand growth, this project provides a stable and reliable clean energy solution through a combination of light and storage modes. This not only strengthens Malaysia's position in the regional energy landscape, but also provides a new path for Singapore to achieve energy structure optimization. The project developer Ditronic Energy stated that the corridor will become an important support for Johor's clean energy export capacity, creating a development foundation for industries seeking low-cost renewable energy.

With the advancement of this project, Southeast Asian regional energy cooperation is entering a new stage. The construction of the South Johor Renewable Energy Corridor will not only enhance the scale of Malaysia's renewable energy industry, but also deepen regional economic synergy through cross-border electricity trade, providing an important demonstration for ASEAN's green energy transformation. Against the backdrop of profound adjustments in the current global energy landscape, such cross-border energy infrastructure projects are becoming an important engine for promoting regional sustainable development. Editor/Yang Beihua