Denmark’s green investment proposal valued at USD 1.3 billion for developing Bangladesh’s first 500 MW offshore wind farm has received government approval to carry out a detailed feasibility study and implement the first phase of development with site exclusivity in the next three years.
Denmark’s Copenhagen Infrastructure Partners (CIP) and Copenhagen Offshore Partners (COP), in association with Bangladesh’s Summit Power International, submitted the foreign direct investment (FDI) proposal in July.
The proposed project site is set to be built off the Cox’s Bazar district located in southeastern Bangladesh.
Once operational, the 500 MW offshore wind project would generate renewable electricity which will be supplied directly to the national grid via an onshore substation to homes and businesses.
The project presents a unique opportunity for the country to maximize the utilisation of its coastal resources, supporting the development of the “Blue Economy”, said Summit.
Once implemented, the offshore wind project will be the first of its kind in Bangladesh and possibly in South Asia , said Summit.
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.
Bangladesh, which is still heavily reliant on fossil fuel imports, is targeting to install 5 GW of onshore and offshore wind by 2030 which was set by the Bangladesh Sustainable and Renewable Energy Development Authority (SREDA) in 2022.
The Institute for Energy Economics and Financial Analysis (IEEFA) projected that Bangladesh would require USD 1.7 billion annually in order to support its green transition.