Bangladesh has given its initial approval for a groundbreaking offshore wind energy project, backed by a $1.3 billion investment proposal from Danish firms. The government's green light allows for a comprehensive feasibility study and the commencement of the first development phase within the next three years, as announced in a recent press release.
The initiative, a collaborative effort between Copenhagen Infrastructure Partners (CIP), Copenhagen Offshore Partners (COP), and Bangladesh's Summit Group, represents a substantial foreign direct investment (FDI) proposal submitted earlier this year. The envisioned project is situated offshore in the Cox's Bazar district and, once operational, is set to generate 500 MW of wind energy, supplying electricity directly to the national grid via an onshore substation for homes and businesses.
This offshore wind project holds a distinct promise for Bangladesh to fully harness its coastal resources, supporting the growth of its blue economy—a sector that leverages oceanic resources for economic development.
With the Institute for Energy Economics and Financial Analysis (IEEFA) estimating an annual funding requirement of $1.7 billion for the country's transition to green energy, the multibillion-dollar investment from Summit, CIP, and COP has the potential to catalyze a fresh influx of both foreign and domestic investments, steering Bangladesh towards a more environmentally prosperous future.
Once realized, this offshore wind endeavor will stand as a pioneering achievement, not only in Bangladesh but potentially in South Asia, facilitating the transfer of cutting-edge technology. This transfer promises to expedite the learning curve for an emerging industry and reduce technological barriers for future projects.
Preliminary findings from the study indicate that the construction phase alone could generate hundreds of direct and indirect job opportunities, further supplemented by dozens of high-skilled permanent positions during the project's 30-year operational phase.
