The government of Bangladesh has given its initial approval to conduct a detailed feasibility study for establishing the country’s first offshore wind energy plant.
They have approved the first phase of site development within the next three years, according to a statement by the company involved.
Denmark’s Copenhagen Infrastructure Partners (CIP) and Copenhagen Offshore Partners (COP), in partnership with Summit Group, submitted a $1.3 billion investment proposal earlier this year.
The Power Division of Bangladesh approved the proposal by the end of October.
Once completed, this 500-megawatt wind energy project off the coast of Cox’s Bazar in southwest Bangladesh will directly supply electricity to the national grid through an onshore substation.
This project presents a unique opportunity for Bangladesh to maximize the use of coastal resources and support the development of its blue economy. Despite its clean energy goals, Bangladesh heavily relies on fossil fuels, which have become costlier due to recent price hikes amid global inflationary pressure.
To meet its clean energy targets, Bangladesh needs to swiftly develop utility-scale renewable energy projects and employ climate-resilient technologies to support its ongoing economic growth and poverty elimination goals by 2041.
According to projections by the Institute for Energy Economics and Financial Analysis, Bangladesh requires $1.7 billion annually for its green transition. Summit believes that their project with CIP and COP may kickstart a new wave of foreign and domestic investments.
This offshore wind power project will be the first of its kind in Bangladesh and possibly in South Asia. It promises to facilitate technology transfer, accelerating the learning curve for a nascent industry and reducing technological barriers for future projects.