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 International Finance Corp (IFC) of the World Bank have joined forces to create a financing framework for a renewable energy project between Malaysia and Singapore. The US$6 billion Southern Johor Renewable Energy Corridor (SJREC) will be developed by Ditrolic Energy, a clean energy developer and the project sponsor, along with the three financial institutions.
The lenders signed a memorandum on October 26 to establish a framework that addresses regulatory pathways, offtake agreements, risk allocation, and financing structure. By collaborating early, the lenders aim to reduce execution risk, expedite the financial closure process, and attract private capital. Tham Chee Aun, the group CEO of Ditrolic Energy, expressed confidence in the progress made, stating that close to 90% of green energy projects already have capacity booking interest.
The SJREC, co-developed by the Johor state government's investment arm, will involve constructing solar farms and battery storage facilities in Johor. 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 Singapore.
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