Denmark Seeks Significant Investments in Bangladesh's Offshore Wind Sector

Denmark expressed a keen interest in investing in Bangladesh's port infrastructure and offshore wind energy on Tuesday, October 01, 2024.

Denmark Ambassador Christian Brix Moller with Foreign Secretary Md. Jasim Uddin.

In Bangladesh, a densely populated country, natural gas is the primary source of electricity. However, it is heavily reliant on coal and imported fuel. Global data estimates that Bangladesh's total thermal capacity is currently 4,608 GW and will add 35.2% of the country by 2030. Over the past decade, Bangladesh has faced significant challenges in adopting environmentally friendly technologies, due to regulatory decisions, poor policies, and external pressures, despite its potential and clean energy resources. Bangladesh has been slow to adopt green alternatives, unlike many other countries that are pioneers in phasing out sustainable fuels or coal.

Renewables in Focus: Bangladesh Seeks to Overcome Energy Challenges

According to the Bangladesh Electricity Development Board, at least 12% of the country's electricity must come from renewable sources to achieve the Sustainable Development Goals. However, only 2% of that electricity is generated from renewable energy. Despite previous government targets of 5% electricity generation from renewable by 2015 and 10% by 2020, these targets remain unfulfilled, mainly due to the approval of numerous coal-fired power plants such as 1,320 MW Payra, 1,320 MW Rampal, 1,320 MW Maitri Super so on.

 

Wind Power Journey in Bangladesh

 

Bangladesh's First Wind Power Plant, Kutubdia

Wind energy is not new to Bangladesh, its first venture started in 2006 with the installation of 1,000 KW of electricity in Kutubdia. The project was officially launched in 2008 by the Power Development Board and Pan Asia Power as a wind-battery hybrid power project. This project collapsed due to inadequate infrastructure and a lack of advanced technology. Eighteen years later in 2014, a 6 MW wind power facility came online for the first time. In March 2022, a $116.51 million project led by US-DK Green Energy BD Ltd with financial support from China's SPIC Wuling Power Corporation began. Comprising 20 turbines of 3 MW capacities each, the project generates 60 MW of electricity and marks Bangladesh's first commercial wind power initiative to be connected to the national grid in March 2024.

 

Denmark’s Interest in Bangladesh Offshore Wind Sector

 

Bangladesh is fortunate to have 1,320 miles of coastline. Similarly, in southern India with 1600 km of coastline, the Union Cabinet took a landmark decision approving India's first offshore wind power project off the coast of Gujarat. It is Prime Minister Narendra Modi's vision to achieve 500 GW of renewable energy capacity by 2030; Modi launched the Viability Gap Funding (VGF) Scheme with interim tenders in these offshore projects. This is not the first investment opportunity in Bangladesh. Outgoing Danish Ambassador Winnie Estrup Petersen met Sheikh Hasina in 2023 and expressed her willingness to contribute $1.3 billion to Bangladesh's offshore wind power project. 

Denmark Ambassador to Bangladesh Winnie Estrup Petersen pays a courtesy call on Prime Minister Sheikh Hasina at the Prime Minister's Office (PMO) in the capital on Wednesday. 2023. 

As Denmark is a pioneer and global leader in the development of the wind energy industry, following this, the Danish companies Copenhagen Infrastructure Partners (CIP) and Copenhagen Offshore Partners (COP) proposed a $1.3 billion investment of 500 MW of offshore wind power to the Government of Bangladesh. The project is supposed to approve a "Joint Action Plan" for five years under the "2022 Sustainable and Green Framework Engagement". For this, Denmark's Minister of Development Cooperation and Global Climate Policy Dan Jørgensen visited Bangladesh to agree to partner in green and clean technologies and investments for sustainable development.

Denmark has expressed interest in helping develop Bangladesh's pharmaceutical sector and investing in port infrastructure and offshore wind power. According to a press release of the Ministry of Foreign Affairs on Tuesday, the Ambassador of Denmark to Bangladesh, Christian Brix Moller, gave this information during a meeting with Foreign Secretary Md. Jasim Uddin. The Foreign Secretary welcomed the growing interest of Danish companies in investing in Bangladesh.

 

Political Uncertainty in Bangladesh

 

Needless to say, after the resignation of Prime Minister Sheikh Hasina on August 5, 2024, amid nationwide Gen Z and public protests, a caretaker government was formed on August 8, 2024, headed by Nobel laureate Muhammad Yunus. Dr Yunus, the pioneer of the 3ZERO Club, the club works globally intending to achieve net zero carbon emissions, eradicate poverty, and eliminate unemployment through entrepreneurship, is now leading the interim government. 

Danish Ambassador to Bangladesh, Christian Brix Møller, made a courtesy visit to Chief Adviser Muhammad Yunus today, September 22.

After taking over the government, the Ambassador of Denmark met with the Chief Adviser – providing support to victims of the insurgency, and reinforcing commitments to high-quality green investment, climate, and reform agendas. The Ambassador shared the commitment to work towards a green transition to foster a growing and stronger relationship between Denmark and Bangladesh. In this context, he expressed interest in the $1.3 billion investment in offshore wind energy projects along the Bay of Bengal by Copenhagen Infrastructure Partners/Copenhagen Offshore Partners. 

It remains to be seen whether Denmark's proposal will move forward under his leadership.

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