GoB approves development of Bangladesh's first Offshore Wind Project

Photo caption: The consortium including Summit and Denmark’s COP, CIP to carry out a feasibility study for the development of Bangladesh’s first offshore wind project valued at USD 1.3 billion. Photo Credit: NiseriN

Denmark's green investment proposal valued at USD 1.3 billion for developing the country’s first 500 MW utility-scale offshore wind energy project has received a nod in principle from the government to carry out a detailed feasibility study and implement the first phase of development with (site) exclusivity in next 3 years. Denmark's Copenhagen Infrastructure Partners (CIP), Copenhagen Offshore Partners (COP) in association with Bangladesh’s Summit Group had submitted the foreign direct investment (FDI) proposal in July, 2023.

The proposed project site is located in the offshore of Cox's Bazar district. When functional, the 500 MW (installed) wind energy project would generate electricity which will be supplied directly to the national grid via an onshore substation to homes and businesses.

This offshore wind project in particular presents a unique opportunity for the country to maximize the utilisation of its coastal resources, supporting the development of the ‘Blue Economy’. The project comes at a crucial point in time for Bangladesh as despite ambitious clean energy targets, the country remains heavily reliant on fossil fuel imports, a comparatively costly power source due to global inflation-related price shocks. Bangladesh therefore needs to rapidly develop utility-scale renewable energy projects, while simultaneously adapting to climate resilience technologies, to support continued economic growth and eliminate ‘absolute poverty’ by 2041. With the Institute for Energy Economics and Financial Analysis (IEEFA) projecting an annual requirement of USD 1.7 billion in funding for the green transition, this multibillion-dollar proposal from Summit, CIP and COP may kickstart a new wave of foreign and domestic investments, driving Bangladesh towards a truly climate prosperous future.

Once implemented, this offshore wind project will be the first of its kind in Bangladesh – and possibly in South Asia, enabling a “technology-transfer” that would accelerate the learning curve for a nascent industry and reduce technological barriers to entry for future projects. The preliminary study findings suggest that hundreds of direct and indirect jobs would be created during the construction phase, in addition to dozens of high-skilled permanent positions for the 30 year operational phase of the project.

Media Coverage

English
The Daily Star, November 5, 2023
The Business Standard, November 5, 2023
The Daily Sun, November 5, 2023
The Financial Express, November 5, 2023
The Bangladesh Post, November 5, 2023
The Daily Observer, November 5, 2023
The News Times, November 6, 2023
Energy & Power, November 5, 2023

Bengali
Prothom Alo, November 6, 2023
Bonik Barta, November 6, 2023
Samakal, November 6, 2023
Bhorer Kagoj, November 6, 2023
Manabzamin, November 5, 2023
Kaler Kantho, November 5, 2023
Janakantha, November 5, 2023
Jugantor, November 5, 2023
The Business Standard, November 5, 2023
Alokito Bangladesh, November 5,2023
Amader Shomoy, November 5, 2023
BizTech24, November 6, 2023
24onbd, November 5, 2023
Desh Rupantor, November 6, 2023
Sharebazar News, November 5, 2023

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05 November 2023

GoB approves development of Bangladesh's first Offshore Wind Project

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