A new portfolio led by Global South Utilities (GSU) will drive Yemen’s energy recovery, encompassing solar and wind generation alongside modernization of the country’s distribution networks to restore basic services.

GSU’s plan includes adding generation capacity and strengthening the distribution system to stabilise the power supply and reconnect essential services in Yemen’s war-damaged grid.

Regional energy diplomacy is elevating the UAE’s role in Yemen’s reconstruction, pursuing a single implementing entity to cut governance risks in a fragmented political setting.

Investors see renewable energy as a quicker, modular route to rebuild fragile states, though long-term governance and regulatory clarity remain hurdles.

The program stands as one of the few viable pathways to restore essential services in Yemen and will be closely watched by development agencies and climate-finance institutions.

Yemen’s grid has deteriorated for decades, with major damage after 2014; households rely on diesel and solar projects like Aden are already easing shortages.

A civil war since 2014 has crippled infrastructure; a large-scale UAE-funded solar plant in Aden is contributing to relief efforts.

If successful, Yemen could become a test case for solar-heavy grids in low-governance environments and show how regional powers influence energy transitions beyond their borders.

The program aims to anchor Yemen’s energy recovery and spur broader commercial activity, signaling a major Gulf energy diplomacy push in post-conflict rebuilding.

The UAE has announced a $1 billion energy investment in Yemen to support rebuilding, to be implemented by Abu Dhabi-based GSU.

GSU CEO Ali Alshimmari says the $1 billion portfolio will expand Yemen’s energy system to support a larger economy and a more active market.

Yemeni Prime Minister Salem bin Braik confirmed the UAE’s pledge of $1 billion to back Yemen’s energy sector.

Renewables accounted for about 10.4% of Yemen’s generation in 2023, with plans for a second phase of the Aden solar project in 2026 likely to double capacity.

Solar energy represented roughly 10% of Yemen’s electricity in 2023, with Aden’s second phase anticipated in 2026 to boost output.

The new portfolio covers generation and distribution to ensure power reaches hospitals, water systems, and small industries in shortage areas.