Yemen’s energy story is not mainly about the size of its oil reserves or the percentage of electricity produced from renewable sources. It is about the collapse of a centralized system and the growth of thousands of local alternatives. War damage, political division, fuel shortages and falling public revenue have weakened oil production, natural gas exports and the national electricity grid. In response, homes, farms, hospitals and businesses have turned to rooftop solar panels, batteries and private generators.
This has created an unusual energy system. Yemen still has oil and natural gas resources, but it now depends heavily on imported fuel. It has a public electricity company, but only a small share of the population relies mainly on utility power. It also has strong solar potential, yet much of its solar market grew without a stable national plan.
A Country Where Energy Has Moved Beyond the National Grid
Yemen entered the current conflict with one of the weakest electricity systems in the Middle East. The national grid did not reach every community, generation capacity was limited, and power cuts were already common. Years of fighting then damaged power stations, transmission lines, substations and local distribution networks.
Electricity access figures do not tell the whole story. World Bank estimates suggest that around three-quarters of Yemenis have access to some form of electricity, but only about 12 percent of the population relies on the public utility.[1] For many households, “electricity access” means a small solar panel, a battery, a neighborhood generator or a private commercial service rather than dependable power from a national grid.
The result is not one Yemeni electricity system but several. Public power remains available in parts of Aden, Hadramout, Shabwa and other areas under the internationally recognized government, although supply can be limited and unreliable. In much of the north and west, the old public network has largely been replaced by household solar systems and private electricity providers.
This fragmentation makes national energy planning difficult. Electricity tariffs, fuel supplies, technical standards and investment conditions can differ from one region to another. A project that works in Aden may not be managed in the same way in Sana’a, Taiz, Marib or a remote rural district.
Oil Once Funded the State; Now Its Absence Defines the Crisis
Oil has played a central role in Yemen’s modern economy. The country has never produced at the level of Saudi Arabia, the United Arab Emirates or Iraq, but crude exports provided foreign currency and a large share of public revenue. Production came mainly from fields in Hadramout, Shabwa and the Marib–Al Jawf area.
Yemen’s oil sector was already in decline before the current war. Older fields were producing less, infrastructure required investment, and pipelines were frequent targets of sabotage. Production fell sharply when the conflict expanded in 2015, although some operations and exports later resumed.
That limited recovery ended in late 2022, when attacks on oil export facilities stopped crude shipments from ports controlled by the internationally recognized government. The loss of exports removed one of the government’s most important sources of income. It also reduced the foreign currency available for fuel imports, public salaries, electricity services and other state spending. The IMF now describes Yemen as an oil importer rather than an active oil-exporting economy.[2]
Oil still matters inside the country. Diesel and fuel oil power generators, water pumps, trucks, buses and many public power stations. Petrol and diesel prices affect the cost of food and almost every other transported product. When the currency weakens or import routes are disrupted, fuel costs quickly become a wider economic problem.
Restoring oil exports could improve government finances, but oil alone cannot rebuild Yemen’s energy system. Fields, pipelines, roads, storage sites and export terminals require security and maintenance. Revenue management would also need to be accepted across a deeply divided political system.
Natural Gas and the Frozen Promise of Yemen LNG
Yemen also has natural gas resources, especially in and around Marib. Before the war, gas supported electricity generation and supplied the Yemen LNG project at Balhaf on the Gulf of Aden coast.
The Balhaf liquefied natural gas plant was one of the largest industrial investments ever completed in Yemen. Gas from inland fields was transported through a long pipeline to the coast, where it was processed into LNG for export. The project gave Yemen access to international gas markets and created another possible source of public revenue.
Commercial LNG production and exports stopped in 2015 as security conditions deteriorated. The facility remains under force majeure and in preservation mode, meaning that it is being maintained but is not producing LNG.[3] Restarting the plant would require more than repairing equipment. It would depend on political agreements, secure gas fields, protected pipelines, reliable port access and confidence from international partners.
Natural gas could also have an important domestic role. Yemen’s public power system has depended heavily on diesel and heavy fuel oil, both of which are expensive to import and transport. Greater use of domestic gas in power plants could lower fuel costs and reduce exposure to international oil prices. However, this would require secure production and pipeline infrastructure linking gas fields to major demand centers.
The Marib gas-fired power station once showed the value of this model. Its decline also showed the danger of relying on a small number of major plants and transmission routes in a country with difficult terrain and continuing conflict.
Coal Has Little Place in Yemen’s Energy System
Coal is not a major part of Yemen’s energy economy. The country does not have an important commercial coal-mining industry, and coal-fired power stations do not form part of its main electricity infrastructure.
Small quantities of coal products may be used in limited industrial or commercial activities, but coal is not central to Yemen’s energy security. The country’s fossil fuel problems are mainly connected to crude oil, diesel, fuel oil, liquefied petroleum gas and natural gas.
This separates Yemen from coal-dependent economies such as South Africa, India or China. Yemen does not need to manage a large coal phaseout. Its challenge is replacing costly oil-based generation while rebuilding electricity access.
Electricity Infrastructure: From National Network to Local Survival
Before the war, Yemen had roughly 1,500 megawatts of generation capacity connected to the national grid. Even then, the system was small compared with the size of the population. By 2021, less than half of that connected capacity remained available, while many cities had become dependent on isolated power stations rather than a functioning national network.[4]
The damage has affected every level of the power system. Generation plants have stopped operating or have run below capacity because of fuel shortages. Transmission lines have been damaged, including important routes linking Marib with Sana’a and other population centers. Local distribution systems suffer from poor maintenance, illegal connections, weak billing systems and high technical losses.
The Public Electricity Corporation has also become institutionally fragmented. Different branches operate under different authorities, while weak revenue collection limits maintenance and investment. Electricity may be sold at low official tariffs, but this does not necessarily mean that consumers receive regular service. Many households pay again for diesel generation, private electricity or solar equipment.
Recent solar projects have added a new layer to this system. A 120-megawatt solar plant near Aden and a 53-megawatt plant in Shabwa became two of Yemen’s most important modern power assets. In January 2026, their Emirati operator transferred both facilities to Yemen’s Public Electricity Corporation. The plants were operating at the time of the transfer, although several other renewable projects under development were paused.[5]
The handover creates both an opportunity and a test. Yemen now has significant solar plants that can support public electricity, but their long-term value will depend on local technical capacity, maintenance budgets, grid stability and spare parts.
Solar Power Became Yemen’s Emergency Energy System
Solar energy in Yemen did not first expand because of a smooth national energy transition. It expanded because people needed electricity after the public system failed.
Yemen has high levels of solar radiation across much of its territory. Panels can be installed on homes, shops, clinics, schools, farms and small businesses without waiting for a national transmission line. Imported solar equipment therefore became a practical response to blackouts and fuel shortages.
Small systems usually provide lighting, phone charging and power for basic appliances. Larger systems can operate refrigerators, pumps, medical equipment, workshops and communications networks. Batteries are especially important because electricity is often needed after sunset, although battery cost and quality remain major problems.
According to IRENA’s 2025 country profile, Yemen had about 403 megawatts of reported solar capacity in 2024. Solar represented around 19 percent of recorded electricity capacity and 20 percent of reported generation in the latest available figures.[6] These statistics may not capture every small household installation in a large informal market.
International programs have helped expand the sector. The first Yemen Emergency Electricity Access Project supported solar systems for households and public facilities between 2018 and 2022, reaching nearly 800,000 people. A second phase has continued work in rural and peri-urban communities.[1]
Solar power is also being used for schools, clinics, water systems and local markets. In Taiz Governorate, one UNDP project combined solar and wind generation in a 200-kilowatt hybrid mini-grid. Other programs have supported solar microgrids operated by local groups and entrepreneurs.[7]
These projects show that Yemen’s future electricity system may remain decentralized even if the main grid is repaired. Large power stations and transmission lines will still matter, but local solar systems can reduce pressure on the grid and protect essential services during wider outages.
The next problem is quality. Yemen’s solar market includes equipment of very different standards. Poor batteries, weak installation practices and limited technical support can shorten system life. A stronger market would require product standards, trained installers, repair services, consumer finance and safe recycling for damaged panels and batteries.
Energy, Water and Agriculture Cannot Be Separated
Yemen’s energy crisis is closely connected to its water crisis. Much of the country is dry, rainfall is uncertain, and groundwater levels are falling in several major basins. Water must often be pumped from deep wells, making access dependent on electricity or fuel.
Diesel pumps were once common in agriculture and community water systems. Rising fuel costs have made them difficult to operate. Solar pumps can provide water without repeated diesel purchases, helping villages, farms and displaced communities maintain access to drinking water and irrigation.
Solar power has therefore become important to rural livelihoods. It can support food crops, coffee production, livestock and local water networks. It can also keep pumps working when fuel deliveries are delayed.
However, cheap solar pumping creates a serious policy problem. Once panels are installed, the cost of running a pump is very low. Farmers may pump more water because they no longer need to buy diesel for every operating hour. In a country where groundwater is already being extracted faster than it is naturally replaced, uncontrolled solar pumping can increase depletion.[8]
This issue is especially important in areas producing irrigated high-value crops, including qat, fruit and vegetables. Yemen needs solar irrigation, but it also needs water measurement, efficient irrigation systems, local water agreements and limits that protect shared aquifers.
Energy investment cannot solve the water crisis by itself. Solar pumps should be connected to drip irrigation, water storage, crop planning and groundwater governance.
Nuclear Energy in Yemen Is About Science, Not Power Generation
Yemen does not operate a nuclear power plant, and nuclear electricity is not part of its present energy mix. The country’s grid is too fragmented, public finances are too weak, and the wider security environment is not suitable for a major civilian reactor project.
Yemen does, however, work with nuclear science in non-power areas. It has been a member of the International Atomic Energy Agency since 1994. In 2024, Yemen and the IAEA signed a cooperation framework covering the period from 2024 to 2029.
The framework focuses on nuclear and radiation safety, health, nutrition, food, agriculture, water resources, environmental work and nuclear science.[9] These activities can include cancer treatment, medical imaging, crop research, water analysis and the safe control of radioactive materials.
For the foreseeable future, “nuclear energy in Yemen” therefore means peaceful scientific and medical applications rather than electricity generation. Large reactors or small modular reactors are unlikely to become practical options until the country has a stable government, a stronger grid, an effective regulator and much greater financial capacity.
Bab el-Mandeb Makes Yemen Globally Important
Yemen produces far less oil than the largest Gulf exporters, but its location gives it major importance to the international energy system. The country sits beside the Bab el-Mandeb Strait, which connects the Gulf of Aden and the Arabian Sea with the Red Sea.
Ships carrying crude oil, petroleum products and LNG use this route to travel between the Indian Ocean, the Suez Canal and European markets. It is one of the strategic passages linking Gulf energy exports with the Mediterranean. Disruption around Yemen can therefore affect shipping costs, insurance rates, delivery times and the routes chosen by international energy companies.[10]
This creates a contrast. Yemen’s own population has limited and unreliable access to electricity, while some of the world’s most important energy cargoes pass close to its coast.
Ports are also essential to Yemen’s domestic energy supply. Fuel imports must enter through facilities on the Red Sea or Gulf of Aden coasts before being moved inland. Port restrictions, damaged roads, security problems or currency shortages can reduce supply and raise prices far from the coast.
A future energy strategy must therefore treat port infrastructure, shipping security, fuel storage and road transport as parts of the electricity system. A power plant cannot operate when its fuel cannot reach it.
What Yemen’s Energy Recovery Would Require
Yemen is unlikely to rebuild one large, centralized energy system exactly like the one that existed before the war. Its strongest path would combine repaired public infrastructure with decentralized solar power.
The first requirement is reliable basic service. Existing power plants, substations and local networks need rehabilitation before expensive new projects are added. Investment should focus on equipment that can quickly restore electricity to hospitals, water systems, schools, markets and densely populated districts.
The second requirement is a more stable fuel system. Diesel and heavy fuel oil will remain necessary for some time, but Yemen needs better import arrangements, storage capacity and payment systems. Domestic natural gas could eventually replace part of this oil-based generation if fields and pipelines become secure.
The third requirement is continued solar expansion. Large plants in Aden and Shabwa can support urban grids, while mini-grids and rooftop systems can serve rural communities and isolated facilities. Battery storage, equipment standards and technical training will become increasingly important as the market grows.
Oil and LNG could again provide export revenue, but only if security and political agreements allow production to restart. Even then, export income would need to support electricity infrastructure rather than simply restoring the old dependence on hydrocarbons.
Water policy must also become part of energy policy. Solar pumping can protect communities from high diesel prices, but unmanaged groundwater extraction could create a deeper crisis.
Yemen’s energy future will be decided by whether it can connect local survival systems with national reconstruction. Solar panels have already changed how Yemenis produce and use electricity. The long-term challenge is to turn that emergency response into an affordable, reliable and properly managed energy system.