Yemen’s energy mix is heavily dominated by fossil fuels, with over 99% of energy consumption traditionally derived from oil and natural gas. Due to conflict, domestic oil production has plummeted, forcing a reliance on expensive imports and creating a severe electricity crisis, although recent, rapid adoption of solar power (accounting for over 10% of generation in 2023) is providing critical relief in some areas.

Yemen possesses high potential for green hydrogen production due to abundant solar resources, with studies indicating a competitive Levelized Cost of Hydrogen (LCOH) of approximately $2.70 per kg. While neighboring countries like Oman and Saudi Arabia lead in active projects, Yemen’s geographic position allows for significant, though currently early-stage, renewable energy-based, sustainable development.