Malaysia-based Ditrolic Energy has signed a memorandum of Understanding (MoU) with DBS Bank, the International Finance Corporation (IFC), and Malayan Banking (Maybank) for the $6bn Southern Johor Renewable Energy Corridor (SJREC) project.
The agreement, signed at the 19th Singapore International Energy Week (SIEW) 2026, sets out a bankability and financing framework for the Malaysia-Singapore cross-border renewable energy scheme.
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The SJREC project is a solar and battery storage development in Johor, Malaysia.
Ditrolic Energy is co-developing the project with Permodalan Darul Ta’zim, the strategic investment arm of Johor State Government.
Ditrolic Energy group CEO Tham Chee Aun said: “With close to 90% of our green energy already seeing capacity booking interest, our focus now is a smooth path to financial close.
“By bringing DBS, IFC and Maybank to the table well ahead of FID, and working closely with governments, regulators and offtakers, we hope to set a reference framework for financing future ASEAN Power Grid projects.”
The memorandum brings together multilateral and commercial financial institutions to establish a framework focused on the bankability and financing structure of SJREC project.
A working group will be formed to assess requirements such as regulatory pathways, interconnection, offtake, risk allocation, environmental and social standards, and financing options.
The group will also prepare recommendations to support the project’s financing readiness.
Ditrolic Energy has also entered into a collaboration agreement with IFC relating to the project.
In August 2026, Southern Solar Alliance, a Ditrolic Energy subsidiary, received conditional approval from Singapore’s Energy Market Authority to import up to 600MWac of renewable electricity from Johor into Singapore.
The project is moving through contracting, licensing, permitting, and preparing for a final investment decision (FID).
The parties also intend for the framework to inform future cross-border projects under the ASEAN Power Grid initiative by coordinating lenders from Malaysia and Singapore early in the process to help reduce risk and mobilise private investment.
