Bangladesh approves $1.3bn Danish proposal for first offshore wind farm

Bangladesh’s government has given its preliminary nod to a visionary green investment valued at USD 1.3 billion, aimed at erecting the country’s inaugural 500 MW utility-scale offshore wind energy project. This significant stride toward renewable energy has been met with optimism as the administration has granted Copenhagen Infrastructure Partners (CIP), Copenhagen Offshore Partners (COP), and Bangladesh’s own Summit Group the green light to carry out an extensive feasibility study. Furthermore, the government has assured site exclusivity over the next three years to fortify this venture’s development phase.

Located off the coast of the scenic Cox’s Bazar district, this offshore wind endeavor is expected to make a substantial impact. Upon completion, it will funnel electricity directly into the national grid, ensuring a reliable supply of clean energy to both residences and businesses throughout the region.

This leap forward for Bangladesh’s energy sector is particularly timely. The nation’s current heavy reliance on fossil fuel imports has placed a strain on the economy due to global inflation-related price hikes. As Bangladesh marches towards its ambitious goals, including the eradication of absolute poverty by 2041 and embracing the Blue Economy, this project emerges as a cornerstone for future prosperity. According to the Institute for Energy Economics and Financial Analysis (IEEFA), Bangladesh will require an annual investment of USD 1.7 billion to stay on track with its green transition. The proposal from Summit, CIP, and COP may well be the catalyst needed to attract further foreign and domestic investments in this arena.

With the potential to set a precedent not only for Bangladesh but for South Asia at large, the project promises to usher in a wave of technology transfer, job creation, and reduced technological barriers. The construction phase alone is poised to generate hundreds of jobs, while the 30-year operational lifespan of the wind farm will offer dozens of high-skilled, permanent roles.