Denmark’s green investment proposal valued at $1.3 billion for developing Bangladesh’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.
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 a press release.
Copenhagen Infrastructure Partners (CIP), and Copenhagen Offshore Partners (COP) in association with Bangladesh’s Summit Group submitted the foreign direct investment (FDI) proposal in July this year.
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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 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 press release 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.
