Abu Dhabi-based Global South Utilities (GSU) completed the handover of two major solar power plants in Yemen to the state-run Public Electricity Corporation, after Yemeni authorities requested all Emirati companies withdraw from the country, Reuters reports, citing a statement.

BACKGROUND- The withdrawal comes weeks after the UAE pulled its remaining military forces from the country amid escalating tensions between the Saudi-backed government in Yemen and the separatist Southern Transition Council, which was in the past backed by the UAE, as well as the cancellation of a bilateral defense pact.

What moved: The transfer included the 120 MW Aden solar plant and 53 MW Shabwa facility. GSU said both assets were handed over while operating at full technical capacity, with operations and maintenance teams withdrawn through a formal process, responding to suggestions of an abrupt shutdown.

A full 180: Just a few months ago, GSU said it was planning on expanding the Aden plant to make it the largest solar power project in Yemen once completed in 2026, as well as commissioning the Shabwah plant.

The move has also put a stop to the future pipeline. The exit freezes GSU’s planned USD 1 bn Yemen energy portfolio, which was set to exceed 1 GW of capacity alongside transmission and distribution upgrades. The company confirmed multiple projects were halted following its departure.

Zooming out

Despite the exit from Yemen, GSU is continuing to deploy capital in Africa and Asia, where it is expanding solar, wind, and hybrid assets. Most recently, it acquired a 51% stake in renewables platform 40Capital, gaining control of a pipeline of run-of-the-river hydropower projects in Kyrgyzstan. GSU also opened a 50 MW solar plant in Chad and inked an MoU with Madagascar to develop renewable projects.

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