UAE firm withdraws Yemen solar operations

26 January 2026

 

UAE-based Global South Utilities (GSU) has completed the handover of the Aden and Shabwa solar power plants to Yemen’s Public Electricity Corporation, following an official request by Yemeni authorities for the withdrawal of all UAE companies from the country.

The move comes amid Yemen’s ongoing political fragmentation and security challenges, which have complicated foreign commercial and infrastructure operations in the country.

In a letter dated 22 January 2026, GSU said it had evacuated all operations and maintenance teams from the 120MW Aden solar plant and the 53MW Shabwa solar plant.

Both facilities were handed over fully operational and placed under the authority of the state-owned utility.

GSU operates solar power plants in Yemen with a combined capacity of 173MW. The company said the withdrawal of its technical teams was carried out to ensure personnel safety and to enable a structured and responsible transfer of assets.

“Global South Utilities did not suspend operations unilaterally or abruptly,” the company said. “Both power plants were handed over while operating at full technical capacity, under a formal handover process.”

GSU added that continuing to operate large-scale power facilities without specialised technical teams on the ground would pose operational risks and would not meet internationally recognised standards for energy facility operations.

Several projects are at advanced stages of development and have been paused following the company’s exit from the Yemeni market, including:

  • Al-Mokha – phase 2 (40MW): 85% complete
  • Al-Khokha (10MW): 80% complete
  • Hays (10MW): 75% complete
  • Socotra (10MW): 35% complete (civil works and procurement)
  • Aden expansion (120MW): 35% complete (civil works and procurement)

In November, GSU announced $1bn-worth of new energy projects in Yemen to support the rebuilding of the country’s electricity sector.

The programme was expected to be delivered through solar and wind energy projects, battery energy storage systems and the development of distribution networks.

According to GSU, its $1bn energy project portfolio in Yemen covers 13 projects across six governorates, with a combined capacity exceeding 1,000MW.

In August, GSU began work on a 120MW expansion of the Aden solar photovoltaic plant, doubling its capacity to 240MW. The plant began operations last year with a 120MW first phase.

At the time, the company said phase two would begin commercial operations in 2026.


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Mark Dowdall
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