EU, Dhaka sign €400-mn for renewable energy, launch talks for new pact

Five additional cooperation actions, worth €70 million, supporting education, decent work, green construction, e-governance and the prevention of gender-based violence were also launched at the EU Global Gateway Forum in Brussels.

European Commission President Ursula von der Leyen and Bangladesh Prime Minister Sheikh Hasina launched negotiations for a new Partnership and Cooperation Agreement to expand and develop bilateral ties there.

“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,” Hasina was quoted as saying in an official EU release.

The €400 million for renewable energy projects include an EU-guaranteed EIB loan of €350 million, complemented by a blending support package of €45 million that includes technical assistance and an investment grant.

In addition, an accompanying Green Energy Transition project worth €12 million, which includes €7 million co-financed by Germany, aims to work on policy, legal framework and investment climate to facilitate an inclusive green energy transition.

Projects will contribute to boost access to energy and rural development throughout Bangladesh, consisting mainly of utility scale solar photovoltaic and onshore wind projects, and potentially associated battery energy storage systems.

The operation is expected to contribute to the installation of an estimated 750 MWp of new renewable energy capacity in Bangladesh.

The investments are also likely to improve power distribution and decentralisation, eventually increasing national and, potentially regional, connectivity and resilience.

As part of the technical assistance, the EU will help to examine project proposals including ways of combining energy production and food production on the same plot of land, solar, hybrid solar/wind, and solar with battery.

Solar projects and onshore wind projects will be connected to the national grid under the supervision of the Ministry of Power, Energy and Mineral Resources.

The Partnership for Green Energy Transition will help create a Bangladeshi legal framework that fosters investment for the inclusive green energy transition and will also improve employment opportunities for female professionals in the energy sector.

Fibre2Fashion News Desk (DS)