A massive $6 billion renewable energy project in Malaysia is a step closer to reality, following a collaboration announcement and investment agreement from the World Bank. The site will form part of a Southeast Asian power grid initiative and connect to Singapore to facilitate cross-border electricity trade.

While the final scope hasn't been announced, the initial sizing of the scheme is for a 2,000 square kilometre hybrid solar and battery energy storage system zone, with some 10,000 acres set for the initial phase of the project. This initial phase was said to be “expected” to include up to 4 GW of solar capacity and 5.12 GWh of energy storage capacity.

The Cooperation Document exchanged by key parties, including the Johor state, for the establishment of the Southern Johor Renewable Energy Corridor (SJREC) brings together many initiatives. One is a pan-Southeast Asian grid initiative, dubbed the ASEAN Power Grid or APG, that aims to connect Malaysia's Johor region with Singapore as part of a Johor–Singapore Special Economic Zone (JS-SEZ) masterplan.

It is also part of the Johor Renewable Energy Policy 2030, which details joint efforts across project development, technical support and further potential financing for the project, and ties into the stated ambitions of the Johor Green Development Policy 2030.