Yemen Intention to Generate Electricity by Using Coal
- In 2010, the Yemeni Government asked the Mackenzie Consultant Company to carry out a feasibility study on the energy sector in Yemen. The study centered on the importance of introducing a new method for electric power generation. This is by using coal. This is so because coal has an economic feasibility and scientific experiments have shown that coal is cost-effective and is beneficial for private sector cement plants.
The 2010 study has shown that Yemen falls short in meeting energy demand by 25% in the rush hour. It has also elaborated that that the electricity service delivered by the Public Electricity Corporation to beneficiaries does not even exceed 50% of the total population in need of that service albeit that the Government subsidizes the electricity sector by approximately 60% of its total costs and an annual amount of $ 550 US dollars.
- In 2012, the Coalition Government forwarded a program to the House of Representatives; the program set a number of measures to address Yemen's various imbalances. One of the remedies to the imbalance of the electricity sector—which have escalated even more since the 2011 crisis—was to repeal oil and gas subsidies.
This is by expanding electric power generation through the ultimate use of available natural gas. Another possibility was to bridge the gap of the increasing demand of energy by using coal in electric power generation.
- In 2012, the Coalition Government, represented by the Ministry of Electricity and Energy, actually signed a Memorandum of Understanding with the Chinese National Corporation for Electrical Equipment (CNEEC) to build two plants for electric power generation; the first one, located at Aden Governorate, has a 600 MW generation capacity, the other at Hodeida Governorate with a (600) MW generation capacity. Both plants would operate by using the "filtered coal" as an eco-friendly source of energy.