UAE-based Global South Utilities, an energy and water infrastructure company, is boosting its solar power generation capacity in Yemen to provide electricity to thousands of homes amid growing power challenges in the country.
The company on Friday inaugurated a 53-megawatt solar power project in Ataq City in the Shabwah governorate, developed in collaboration with Yemen’s Ministry of Electricity and Energy, it said in a statement.
The plant is expected to generate about 118,642 megawatt-hours of electricity annually – enough to power 330,000 households – while reducing carbon dioxide emissions by about 62,727 tonnes a year.
Electricity from the plant will “fully meet” the needs of Ataq City and the surrounding districts of Al Saeed, Al Musayniah, Jardan, Nisab, Markhah and Habban, powering homes, schools and healthcare facilities, said GSU, which is owned by Abu Dhabi-based investment company Resources Investment.
The project will also feature a 15-megawatt-hour battery energy storage system to stabilise supply during peak demand. Infrastructure works include 85,644 solar panels, six transformer stations, a central monitoring and control building, and a 15km overhead transmission line connecting the plant to the national grid through 51 towers.
The Shabwah plant contributes to expanding reliable, clean power access in Yemen’s urban and rural communities, said Ali Alshimmari, chief executive and managing director of GSU. He added that such renewable energy investments are vital to improving quality of life, reducing fuel dependence and building climate resilience in the country.
In a separate statement, GSU said it would double capacity at the Aden solar PV plant, “Yemen’s first and largest solar power facility”, to 240MW after the second phase began.
Located in Bir Ahmed, the plant began operations with 120MW in its first phase. Commercial operations as part of the next phase are scheduled for 2026, GSU said.
Once operational, the second phase, which will comprise more than 194,000 solar panels, will generate about 247,462 megawatt-hours annually, enough to power 687,000 homes.
“Combined with phase one, the facility will cut almost 285,000 tonnes of annual carbon dioxide emissions – equivalent to removing more than 85,000 cars from the road,” GSU said.
The expansion will “strengthen energy security in Yemen, reduce reliance on imported fuel, and improve air quality”, the company added.
Yemen has been struggling with an electricity crisis, having been mired in conflict for more than a decade, after the Iran-backed Houthis launched attacks on internationally recognised central government. A fragile truce was enacted in 2022, although it has since expired.
As of June this year, Aden’s power grid was delivering less than four hours of electricity a day, with 85 per cent of neighbourhoods experiencing blackouts lasting up to 20 hours, the UN Office for the Co-ordination of Humanitarian Affairs said.
Widespread damage to infrastructure, including the country’s electricity grid, has “plunged millions into darkness, and crippled access to essential services like healthcare, education and clean water”, the UN said. Many households and businesses rely on expensive generators for energy, which further strains an already dire economic situation.
Real GDP per capita in Yemen has declined by 58 per cent since 2015, while inflation in areas controlled by the internationally recognised government exceeded 30 per cent in 2024, the World Bank said in a June report. While increased budget support and spending cuts helped narrow the fiscal deficit to 2.5 per cent last year, down from 7.2 per cent in 2023, the “economic environment remains fragile”, it added.
The outlook for 2025 also remains bleak, with real GDP projected to contract by 1.5 per cent, while nominal GDP per capita is expected to drop by 19 per cent.
“Continued fiscal strain, currency depreciation, liquidity shortages, and fuel disruptions will likely deepen economic vulnerabilities,” the report said.
The UN has initiated projects with international partners to support Yemen's energy crisis. Through funding from the EU and Sweden's government, the UN Development Programme has undertaken decentralised off-grid initiatives, with a focus on solar power.
About 152 public service facilities, including schools, healthcare centres, and local administration offices received solar energy equipment since 2023, the UNDP said in January.