DBS, Maybank, IFC to collaborate on funding Johor-Singapore renewable energy project
The financing framework could be reference for future cross-border initiatives under Asean Power Grid
DBS, Maybank, and the World Bank's International Finance Corp (IFC) have formed a partnership to create a financing structure for a cross-border renewable energy project linking Malaysia and Singapore. The initiative, called the Southern Johor Renewable Energy Corridor (SJREC), is valued at $6 billion and involves building solar farms and battery storage facilities in Johor.
The lenders, along with Ditrolic Energy, the project sponsor, signed a memorandum on October 26th to establish the financing and bankability framework. The working group aims to identify regulatory pathways, offtake arrangements, risk allocation, and the financing structure. By collaborating early, the lenders hope to decrease execution risk, accelerate the path to financial closure, and attract private capital.
Tham Chee Aun, Ditrolic Energy's group CEO, expressed optimism about a smooth financial closing process, noting that 90% of green energy capacity already shows interest. The project aligns with Johor's Green Development Policy 2030 and the Johor-Singapore Special Economic Zone master plan. Ditrolic Energy's subsidiary has received conditional approval from Singapore's Energy Market Authority to export up to 600 megawatts of renewable electricity to the city-state.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
