Bangladesh enters the club of offshore wind power as the government on Sunday approved a proposal from Denmark to develop a 500 Mega Watt power generation project at a cost of 1.3 billion US dollar in Cox’s Bazar district.
Not only in Bangladesh, the offshore wind power project is being implemented for the first time in South Asia.
According to officials in the Bangladesh Power Development Board (BPDB), the 500 MW utility-scale offshore wind energy project has received a nod in principle from the government to carry out a detailed feasibility study.
At the same time, it has also received approval to implement the first phase of development with (site) exclusivity in the next 3 years, said the BPDB officials.
Earlier in July this year, the Copenhagen Infrastructure Partners (CIP), and Copenhagen Offshore Partners (COP) in association with Bangladesh's Summit Group had submitted the foreign direct investment (FDI) proposal.
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 maximise the utilisation of its coastal resources, supporting the development of the blue economy.
With the Institute for Energy Economics and Financial Analysis (IEEFA) projecting an annual requirement of $1.7 billion in funding for the green transition, this multi billion-dollar proposal from Summit, CIP and COP may kick start a new wave of foreign and domestic investments, driving Bangladesh towards a truly climate prosperous future.
Once implemented, this offshore wind project will be the first of its kind in Bangladesh – and possibly in South Asia, enabling a technology transfer that would accelerate the learning curve for a emerging industry and reduce technological barriers to entry for future projects, the BPDD officials added.
The preliminary study findings suggest that hundreds of direct and indirect jobs would be created during the construction phase, in addition to dozens of high-skilled permanent positions for the 30-year operational phase of the project.
Earlier on July 19 this year, Denmark at first expressed interest to invest US$ 1.3 billion for producing offshore wind energy in Bangladesh when Danish Ambassador Winnie Estrup Petersen paid a courtesy call on Prime Minister Sheikh Hasina.
According to experts, among the larger nations, Bangladesh is also one of the most vulnerable to climate change due to its low-lying geography and the influence of the Monsoon season on flooding patterns.
Bangladesh, therefore, needs to adapt rapidly to climate change, while simultaneously accessing cleaner, more efficient technologies that support decades of development and growth (and), a shift away from unstable fossil fuel imports, they said.
In this regard, in early June, Bangladesh and Denmark approved a five-year joint action plan under a 2022 sustainable and green framework engagement agreement.
During a recent Dhaka visit Dan Jorgensen, the Danish Minister for Development Cooperation and Global Climate Policy, agreed to a partnership in green and clean technologies and investment for sustainable development.
In their statement, CIP/COP also expressed the hope that their, “multi-billion-dollar proposa could also kickstart a new wave of investment, driving Bangladesh towards a truly climate prosperous future.”
CIP manages ten funds and has raised over US$ 28 billion to date for investments in energy and associated infrastructure.
CIP says its funds focus on investments in offshore and onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, reserve capacity, storage, advanced bio-energy, and Power-to-X.
