The United Arab Emirates on Wednesday announced it will launch energy projects worth $1 billion in Yemen to support the rebuilding of its energy sectors, which will be implemented by Abu Dhabi firm Global South Utilities (GSU).
The agreement will see the company implement a portfolio including projects in solar and wind energy alongside the development of distribution networks in the country, GSU said in a statement.
Yemen is grappling with almost 30 years of an electricity crisis caused by fuel shortages and severe damage to the national power infrastructure from conflict, including a civil war that has torn the country apart since 2014.
It is, however, seeing some relief, as the country’s first large-scale solar plant is helping alleviate some of the shortages. That plant in the southern city of Aden was also funded by the UAE.
Abu Dhabi’s IHC interested in Lukoil’s foreign assets
While solar power represented only 10.4% of Yemen’s total electricity generation in 2023, according to the International Energy Agency, this is expected to rise with a second phase of the Aden Solar Power Plant planned for 2026 to double its capacity.
“This one-billion-dollar portfolio expands an energy system capable of supporting a larger economy and a more active market in Yemen,” said GSU CEO Ali Alshimmari.
Yemeni Prime Minister Salem bin Braik earlier on Wednesday said the UAE has pledged $1 billion to back the country’s energy sector.
American Dollar Exchange Rate