Abu Dhabi's GSU launches $1 billion energy project in Yemen

On Wednesday, the United Arab Emirates announced that it would launch energy projects in Yemen worth $1 billion to help rebuild its energy sector. These will be implemented through Abu Dhabi-based Global South Utilities.

GSU announced in a press release that the agreement would see the company develop a portfolio of projects including solar and wind energy, as well as distribution networks throughout the country. Yemen has been suffering from an electricity crisis for almost 30 years, caused by fuel shortages. The national power infrastructure was severely damaged due to conflict and a civil war which tore the country apart in 2014.

The country is experiencing some relief as its first large-scale plant for solar energy is helping to alleviate the shortages. The UAE also funded the plant in Aden, a city located in the south.

According to the International Energy Agency (IEA), solar power accounted for only 10.4% in Yemen's total electric generation by 2023. However, with the second phase of Aden Solar Power Plant scheduled to be completed in 2026, its capacity will double.

Ali Alshimmari, CEO of GSU, said: "This billion-dollar portfolio expands a system that can support a larger economy in Yemen and a more actively market."

Salem bin Braik, Yemen's Prime minister, said earlier that the UAE had pledged $1 billion for the country's oil and gas sector. Reporting by Utkarsh Shritti and Federico Maccioni from Dubai, and Mohammed Ghobari from Aden. Editing by Chizu Niyama.

(source: Reuters)