Yemen in the Middle East’s energy equation: From natural resources to the right to development

In a mountainous area of Yemen, solar-powered pumps changed how families obtained water. Households that had spent hours collecting it gained access to a system carrying water through tanks at different elevations to their homes. Documented in a World Bank report on electricity access, the experience delivered benefits visible in everyday life: time saved, accessible water and greater opportunities for work and education.

Local electrification projects and the opening of Aden’s solar power plant raise a broader question: how can energy partnerships grow from individual projects into lasting economic capacity?

Yemen’s oil and gas resources, strong solar potential and maritime access provide a basis for economic development. Energy partnerships should connect these assets with domestic production, reliable services and local employment. The terms of investment will determine how much value stays within the country.

Yemen’s share of resource value

Yemen has decades of experience in oil production. The Yemen LNG project’s historical overview records output of approximately 300,000 barrels a day in 2010. This indicates the industry’s past scale; estimating present revenues requires updated production, cost and reservoir data.

Service contracts surrounding extraction determine part of Yemen’s return from oil. Purchasing from domestic suppliers, training technicians and commissioning Yemeni firms to undertake maintenance circulate revenues locally and build skills that can outlast a project. Local content commitments covering these activities can retain more value within Yemen, provided they have measurable targets and effective oversight. A general promise of “technology transfer” offers little basis for assessing delivery.

Refining decisions should begin with markets, feedstock and operating costs. Capital-intensive facilities without dependable sales and maintenance capacity can tie up scarce development funds for years. Assessments should also examine contributions to fuel availability, lower supply costs and domestic services.

Balhaf’s two liquefaction trains have a combined design capacity of 6.7 million tonnes a year, but assessing their economic contribution requires an appraisal of equipment condition, feedstock availability and operating arrangements. Design capacity cannot be treated as current output.

Future decisions should weigh gas export revenues alongside the value of supplying electricity and industry. Reliable power supports workshops and cold storage and enables new investment, while exports generate foreign currency. Infrastructure costs and returns from each use should guide allocation. Agreements with foreign partners need clear information and commitments to support that assessment.

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Electricity for services and production

A small system powering lights, a fan and a phone charger may count towards electricity-access statistics, as the World Bank notes in Yemen’s case. It may nevertheless fall short of the power and operating hours required by a health centre or production facility.

Investment planning should begin with the consumer: which equipment must operate, for how many hours and at what affordable cost? The answers determine generation, storage and network requirements. Buying capacity without these connections increases the risk of poor returns.

International cooperation should cover the working life of a project. Equipment suppliers need to provide training and spare-parts access; investors and electricity buyers need clear arrangements for payments, repairs and currency risk. Power purchase agreements (PPAs) must reconcile the project’s revenue requirements with the buyer’s ability to pay. Without maintenance funding, the value of the original investment can deteriorate within a few years.

Solar power: From natural potential to local markets

According to Yemen’s profile published by the International Renewable Energy Agency (IRENA), approximately 51 per cent of the country’s land falls within a potential annual solar-output range of 1,900–2,000 kilowatt-hours per kilowatt of installed photovoltaic capacity. These estimates help identify promising areas, with site conditions, dust and maintenance requirements shaping project-level performance.

Small solar systems can expand markets for installers, repair technicians and equipment suppliers. Purchase financing and after-sales services matter: abundant sunlight alone cannot help a household unable to afford the upfront cost. Mini-grids can provide shared generation and storage for groups of consumers, particularly where extending the main grid is expensive.

At a larger scale, the UAE-funded Aden Solar Power Plant began operating in July 2024. Its performance can inform subsequent partnerships. Delivered electricity costs, service quality and local maintenance capacity offer useful measures of success.

Diversifying this mix requires attention to the maturity of each option. IRENA’s data show geographical variations in wind resources, making local measurements essential, while geothermal potential identified in Yemen’s Technology Needs Assessment requires further study. Yemen has no nuclear electricity generation; any long-term consideration would require economic, grid and institutional assessments consistent with the International Atomic Energy Agency’s infrastructure framework.

The right to development as a measurable commitment

The UN Declaration on the Right to Development emphasises people’s participation in development and the fair distribution of its benefits. For energy projects, this has contractual implications: service provision, employment and domestic procurement commitments should be specified, with performance information available for assessment.

Yemen’s ports can facilitate equipment imports, energy trade and industrial services. Investment in skills and domestic firms would increase the value of that maritime position. Negotiations with international partners should incorporate these connections from the outset.

Greater exports, accompanied by reliable electricity and productive opportunities, can help reduce poverty and strengthen economic capacity. The credibility of energy diplomacy will ultimately be measured by people’s share of the value generated from their resources—a share visible in incomes, skills and the quality of services.

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The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.