Bangladesh Offshore Wind Power Infrastructure Development Feasibility Study with Renewable Energy Market Forecast

Executive Viability Abstract

This feasibility study evaluates the establishment of a 500MW offshore wind farm in the Bay of Bengal, Bangladesh. Driven by the Mujib Climate Prosperity Plan and the 41% renewable energy target by 2041, the project demonstrates high strategic value despite significant technical and environmental challenges including cyclone risks and grid infrastructure gaps.

## Market Analysis Bangladesh currently relies heavily on natural gas and imported coal. However, the government has committed to increasing renewable energy capacity to 40% by 2041. Recent meteorological studies indicate wind speeds of 7-8 m/s at 100m heights in the offshore regions near Chattogram and Cox's Bazar. The market is currently underserved with zero operational offshore wind capacity, offering first-mover advantages for infrastructure developers. ## Technical Feasibility The project focuses on shallow-water (depths <30m) fixed-bottom turbine installations. Technical challenges include the soft seabed composition (silt/clay) and the high frequency of tropical cyclones. Utilizing 10MW-14MW class turbines with reinforced towers is recommended. Connection to the national grid will require a dedicated offshore substation and HVDC/HVAC subsea cabling to the Anwara or Matarbari points of interconnect. ## Financial Projections Estimated Capex is $1.25 billion USD ($2.5M per MW). Revenue is modeled based on a Power Purchase Agreement (PPA) with the BPDB at a Feed-in Tariff (FiT) of $0.10-$0.12/kWh. Annual O&M costs are projected at 2.5% of Capex. The financial model assumes a 20-year operational life. ## Risk Assessment Key risks include: 1. Extreme weather events (Cyclones). 2. Land acquisition for onshore substations. 3. Currency fluctuation risks (BDT vs USD). 4. Integration with an aging national grid which may require significant upgrades to handle intermittent power loads.