Johor bahru: The World Bank Group has entered into a collaboration agreement with Malaysia to develop the Southern Johor Renewable Energy Corridor (SJREC), a 6 billion USD project. The initiative aims to transform Johor's industrial sector by providing clean electricity and supporting the ASEAN Power Grid initiative through cross-border electricity trade.

According to Namibia Press Agency, the International Finance Corporation, Permodalan Darul Ta'zim, and Ditrolic Energy signed the agreement on Monday. The 2,000-square-km hybrid solar and battery energy storage system in Johor is a key component of the Johor-Singapore Special Economic Zone master plan. The initial phase of SJREC will see the development of up to four gigawatts peak of solar capacity and 5.12 gigawatt hours of energy storage capacity on a 10,000-acre site.

The collaboration, which coincides with the launch of the Johor Renewable Energy Policy 2030, includes joint efforts in project development, technical support, and potential financing. Judith Green, World Bank Group country manager for Malaysia, stated that the project is expected to support Johor's sustainable development goals, create jobs, attract foreign investment, and promote clean energy trade between Malaysia and Singapore.