Danish renewable energy companies have offered Bangladesh a US$ 1.3 billion investment proposal as part of the Mujib Climate Prosperity Plan to build a commercial, utility-scale offshore wind farm with a starting capacity of 500 megawatts off the Bay of Bengal coast.
The proposal was recently made by Copenhagen Infrastructure Partners (“CIP”) and Copenhagen Offshore Partners (“COP”), the largest dedicated greenfield renewable energy investors in the world.
This initial investment proposal and ongoing cooperation could be a crucial factor in Bangladesh’s development into a green nation, according to a media release issued here today. Denmark is the pioneer and the world leader in creating the wind energy business.
In particular, this offshore wind project offers a rare chance for the nation to fully utilize its coastal resources and promote the growth of the “Blue Economy.” The plan comes at a critical time for Bangladesh, which is still largely dependent on imports of fossil fuels while having lofty renewable energy targets—a costly choice because of price shocks caused by inflation.
According to the World Bank, Bangladesh’s yearly Gross Domestic Product (GDP) could decrease by as much as 9% by the middle of the century as a result of climate change. Bangladesh is a highly climate vulnerable country.
In order to achieve high income status and the eradication of absolute poverty by 2041, Bangladesh must quickly adapt to climate change while also gaining access to cleaner, more efficient technologies that support decades of development and growth, a shift away from uncertain fossil fuel imports, and limiting emissions.
Perhaps this multibillion-dollar proposal from CIP and COP could also spark a new wave of investment, guiding Bangladesh towards a truly climate prosperous future. The Institute for Energy Economics and Financial Analysis (IEEFA) projects an annual need of US$ 1.7 billion in funding for the green transition.
A “Joint Action Plan” for the following five years was accepted by Bangladesh and Denmark in early June as part of the “2022 Sustainable and Green Framework Engagement.” Dan Jrgensen, the Danish Minister for Development Cooperation and Global Climate Policy, visited Dhaka recently and reached an agreement to work together on investments in sustainable development and green and clean technologies.
While acknowledging the value of enhancing Bangladesh’s ease of doing business for additional Danish investment, Denmark also indicated interest in assisting, among other sectors, the blue economy and maritime industries.
Once it is put into action, this offshore wind project will be the first of its sort in Bangladesh and perhaps all of South Asia. This will allow for a knowledge transfer that will quicken the industry’s learning curve and lower entry hurdles for future projects.
The preliminary study results indicate that hundreds of direct and indirect employment, along with dozens of permanent ones, could be produced over the project’s 30-year building period.
The largest independent power producer (IPP) in Bangladesh and a well-known infrastructure operator and developer in South Asia, Summit Group, has been suggested by CIP and COP to join their consortium.
