The European Commission (EC) has mobilized €400 million to support Bangladesh build up to 750 MW of new renewable energy capacity in the country, mainly grid-connected utility-scale solar PV, onshore wind and associated battery energy storage projects.
The investments will also help the country improve its power distribution and decentralization for an energy resilient electricity infrastructure.
Under agreements signed between the Government of Bangladesh with the European Union (EU) and the European Investment Bank (EIB), the country will get an EU-guaranteed EIB loan of €350 million.
It is complemented by a blending support package of €45 million including technical assistance and an investment grant. As part of the technical assistance, the EU will help the Asian nation examine project proposals for dual use of land with solar, hybrid solar/wind and solar with battery.
Additionally, a Green Energy Transition project worth €12 million, with Germany co-financing €7 million, will help the country work on policy, legal framework and investment climate to facilitate an inclusive green energy transition.
The bloc will also lend its support to Bangladesh to create a legal framework to foster investment for the inclusive green energy transition and groom women for employment opportunities in the energy sector, under the Partnership for Green Energy Transition.
President of the European Commission Ursula von der Leyen said this investment, signed to commemorate 50th anniversary of EU-Bangladesh diplomatic relations, will support renewable energy and tackle climate change.
"We are confident that this initiative will enable developing countries such as Bangladesh to fight climate change, to address infrastructure gaps, invest in renewable energy, digital innovation, healthcare, education and much more," stated Bangladesh Prime Minister Sheikh Hasina. "The Global Gateway is a sign of friendship, of partnership, of trust, of symbiotic interdependence."
Earlier this month, BloombergNEF said solar energy has the potential to become the cheapest clean energy option by 2025 for the country, yet Bangladesh's draft Integrated Energy and Power Master Plan is exploring unproven technologies like ammonia, hydrogen and carbon capture (see BNEF Says Renewable Energy Best Option For Bangladesh).