Bangladesh Offshore Wind Development

Current System Description

Current Power Capacity Mix

• Coal: 5,250 MW
• Oil & Gas: 20,001.9 MW
• Hydropower: 230 MW
• Solar: 1,028.7 MW
• Onshore Wind: 60 MW
• Bioenergy: 42 MW

Total: 26,612.6 MW identified in Global Energy Monitor's power sector trackers.

According to the Energy Scenario of Bangladesh 2021-22 published by the Hydrocarbon Unit of Energy and Mineral Resources Division, the total installed capacity in Bangladesh's power sector was 25,700 MW from 2021-2022

According to the Annual Report 2022-23 released by Bangladesh Power Development Board (BPDB), the installed capacity in 2022-2023 was as below:

• Hydropower: 230 MW
• Gas: 11,372 MW
• Furnace oil: 6,329 MW
• Diesel: 1,010 MW
• Coal: 2,692 MW
• Solar PV: 459 MW
• Import capacity: 2,656 MW

Total: 24,911 MW

Prospective Power Capacity

• Coal: 7,530 MW total; 4,000 MW Announced, 1,550 MW in Pre-Construction; 1,980 MW Under Construction
• Gas: 26,008 MW total; 20,695 MW Announced, 2,460 MW in Pre-Construction, 2,853 MW Under Construction
• Nuclear: 2,400 MW Under Construction
• Solar: 3,822.2 MW; 2,023 MW Announced, 1,497.2 MW in Pre-Construction, and 302 MW Under Construction
• Onshore Wind: 250 MW Announced, 455 MW in Pre-Construction
• Offshore Wind: 500 MW Announced
• Bioenergy: 42 MW (Pre-Construction)

According to the Integrated Energy and Power Master Plan (2023), Bangladesh's first offshore wind farm feasibility study with operations by 2035.

Renewable Targets

In 2022, Bangladesh Sustainable and Renewable Energy Development Authority (SREDA) announced the goal to develop 5GW from both onshore and offshore wind by 2030. In the country's Integrated Energy and Power Master Plan (2023), a net-zero scenario sees offshore wind grow to 50 GW by 2050, whereas their advanced technology scenario only sees 15 GW installed in 2050.

In 2023, Bangladesh has set the goal to reach 10% of electricity generation from renewable energy by 2041. According to the State Minister for Power, Energy and Mineral Resources Nasrul Hamid, 9,000MW of clean energy will be imported from abroad.

Bangladesh has identified 26 potential blocks in both deep and shallow seas in the Bay of Bengal.

Offshore Wind Potential

Figure 1. Wind resource map of Bangladesh and measurement locations, Assessing the Wind Energy Potential in Bangladesh, NREL/TP-5000-71077 September 2018

In 2017, USAID and NREL(National Renewable Energy Laboratory) partnered to work on the Bangladesh Wind Resource Mapping. The result is shown in Figure 1. An estimated 15 GW of offshore wind will be installed in the Bay of Bengal by 2030.

Quoted from the USAID SURE Program final report - "A recent wind assessment by NREL demonstrated that an area of more than 20,000 km² exhibits wind speeds of between 5.75–7.75 meters per second, with gross wind potential of over 30 GW"

Potential Impacts of Offshore Wind

Offshore wind presents three major impacts to Bangladesh:

• Potential boat collisions in the project area
• Noise interference
• Disruption of fish migratory patterns

Major Renewable Projects

Offshore Wind in Bangladesh

Project	Capacity (MW)	Status
Bay of Bengal wind farm	500 MW	Announced
Chittagong - Givent DLC Green Energy Offshore wind farm	400	Cancelled

Fossil Resources and Retirement

Status of coal mines in Bangladesh:

• Barapukuria coal mine: Operating since 2005, though the Mine's proposed expansion has been shelved.
• Dighipara coal mine: Proposed
• Phulbari Coal Mine: Proposed

Employment

Current employment by sector

GEM operating coal mine data: 593

Prospective employment from the renewable energy sector

Solar power as an industry is expected to create 3,000-4,000 jobs before the end of the decade. An estimated 2.1 jobs per MW can be generated through utility-scale solar development. More broadly, 13,800 jobs could be created in the renewable energy sector by 2030.

Environmental and Social Impacts

Overview of current fossil fuel impacts

Bangladesh's electricity demand has increased substantially in the past twenty years, and the country relies on fossil fuels for 98% of that demand.

Bangladesh subsidizes and imports the majority of its fossil fuels, meaning the country is subject to global market volatility, which has generated debt and domestic financial instability. Fossil fuel projects have created a debt burden of about $2 billion annually, but Bangladesh is continuing to invest in liquefied natural gas (LNG). Estimates project that super-cooling of natural gas for transportation generates emissions that are equivalent to approximately nine coal stations in the United States. Moreover, Bangladesh's natural gas fields are reportedly "drying up" which will further exacerbate reliance on fossil fuel imports.

The effects of climate change already impacting Bangladesh, namely extreme weather events like heat waves and storms, as well as the displacement of more than 7.1 million residents in 2022. An often overlooked impact of climate change is the psychological impact felt by impacted populations, specifically older populations, women, individuals living with disabilities or illnesses, and low-income households. Exposure to extreme heat can also cause respiratory harm and heatstroke, as well as economic impacts like lost wages due to illness and decreased production.

Heat waves are one of the most prominent climatic disasters impacting Bangladesh. In both 2023 and 2024, schools and universities were shut down due to extreme health making attendance dangerous for students, with temperatures reaching 42°C or 108°F in April 2024. This most recent heatwave was the longest on-record since 1948, reaching 30 days of extreme heat. Small children and infants are particularly susceptible to heat-related illnesses due to a lessened ability to regulate internal body heat. In addition, sea level rise may displace more than 35 million people from coastal Bangladesh.

Potential impacts from renewable expansion

Coastal Bangladesh has 17 protected and managed marine areas which must be considered when siting, constructing, and operating offshore wind farms and associated transmission.

Given the country's reliance on fossil fuel imports, domestically produced offshore wind can strengthen Bangladesh's energy security while creating jobs and decreasing emissions.

Governmental information

Relevant political coalitions

Bangladesh Sustainable and Renewable Energy Development Authority (SREDA) and the Danish Energy Agency signed a memorandum in 2018 to develop offshore wind energy.

The U.S. government supported a program named USAID’s Scaling Up Renewable Energy (SURE) program from 2019 to 2021.. according to the official page, the SURE program is to support Bangladesh in its power economies, international climate commitments, and energy security via private investment in, and competitive procurement of, clean electricity.

Transmission and Grid Infrastructure

Current transmission resources

• Transmission Lines (km) in 2021-2022: 13,889 km
• Distribution Lines (km) in 2021-2022: 629,000 km
• Grid Substation Capacity (MVA): 56,882 MVA
• Access to Electricity (Including Off-Grid Renewable): 100%

Grid Infrastructure

The SURE program by USAID, included the plan to enhance grid capacity supporting growing VRE(Variable renewable energy) in the power system.

According to IEEFA(Institute for Energy Economics and Financial Analysis), the current power system of Bangladesh is able to allow 1,700MW to 3,400MW of solar power in day time and 2,500MW to 4,000MW of wind power at night time.

The penetration rate of renewable energy in the country is still relatively low. In 2021, the energy consumption from renewables only contained 3.5% of the year.

Ownership

Major owners of prospective renewables

Givent DLC Green Energy Finance Limited is the owner of Chittagong - Givent DLC Green Energy Offshore wind farm. However, the project is dormant without further update. Additionally, Copenhagen Offshore Partners and Copenhagen Infrastructure Partners are joint owners of the Bay of Bengal wind farm.

Finance

Potential providers of wind/solar finance

Two clothing retailers, H&M and Bestseller, have invested in Bangladesh's first 500-MW offshore wind project, with other brands expected to join. This is due to Bangladesh's status as a "hub" for clothing production, and additional clothing brands are interested in supporting factories' transitions to renewable power.

Other

Charting an electricity sector transition pathway for Bangladesh, IEEFA, April-5-2023

From IEEFA's analysis, to reach the goal of 40% clean energy(with 10% renewables) by 2041, the annual investment to Bangladesh is estimated to be around US$1.53 billion to US$1.71 billion from 2024 through 2041

Bangladesh Advancing Development and Growth through Energy (BADGE): A five-year project started in 2021, with a total $17.2 million by USAID. The project aims to improve energy security and resilience in Bangladesh. FCDO, under the Bangladesh Climate Change and Environment Programme, allocated a total of 120 million pounds from January 2022 to March 2027.