Yemen Monitor / Newsroom:
Al-Araby Al-Jadeed newspaper reported that the Yemeni government is intensifying its efforts to rescue the electricity sector, studying a project for electrical interconnection with Saudi Arabia as part of a package of options to address the acute generation deficit and the heavy reliance on imported fuel.
According to sources in the Ministry of Electricity speaking to the newspaper, rapid alternatives are being discussed ahead of the peak summer demand. These include attracting new investments, securing fuel supplies, leveraging Saudi support, and launching joint projects in the energy and infrastructure sectors.
The newspaper noted that the option of energy investment projects and a joint grid interconnection with Saudi Arabia is now being seriously discussed. This is part of a comprehensive investment plan that extends to oil export pipeline projects, which are being considered for revival in the Arabian Sea, east of Yemen (Hadramout and Al-Mahrah).
The Saudi grant at the beginning of 2026 focused on these two governorates due to their strategic locations and their mineral and oil wealth, paving the way for a broad joint investment plan spanning from the energy sector to various developmental fields.
On the other hand, specialists believe that sustainable solutions lie in exploiting local gas reserves and establishing gas-fired power plants. They cautioned against continued reliance on temporary fixes in light of financing challenges and weak revenue collection.
This coincides with discussions regarding the necessity of transitioning to more sustainable solutions, most notably investing in local gas resources and establishing combined-cycle power plants, rather than relying on the temporary measures that have exhausted the sector.
The Minister of Electricity and Energy, Adnan Al-Kaf, revealed in mid-April a direction focused on cooperation with Saudi Arabia, emphasizing the importance of developing joint cooperation models that include electrical interconnection projects and utilizing available capabilities in the energy sector.
