The local authority in Aden has unexpectedly revived the option of "purchased power" as an urgent solution to the escalating electricity crisis, approximately one year after the government halted this approach.
The Executive Bureau in Aden convened a meeting on Thursday, chaired by the Minister of State and Governor of Aden, Abdul Rahman Sheikh, to discuss the electricity crisis, which has intensified with rising temperatures. The meeting also addressed several proposals and urgent solutions.
While the meeting held the government responsible for the crisis and its radical resolution, a notable proposal suggested that the Presidential Leadership Council and the government expedite the provision of a floating power generation ship with a minimum capacity of 200 megawatts within one month. This proposal raises significant questions about its feasibility and potential to exacerbate the existing electricity problems, which have persisted for years.
The renewed discussion of a floating power ship implies a return to "purchased power" contracts, a major facet of the electricity crisis in liberated areas, particularly Aden. These contracts are financially burdensome due to their reliance on costly diesel fuel, while generating power that has not significantly alleviated the crisis. The Ministry of Electricity and the Aden Electricity Corporation had previously informed the government of their inability to secure the necessary fuel for purchased power stations, leading to the cancellation of contracts for diesel-powered energy purchases in February of the previous year.
The local authority's current proposal echoes a prior attempt in 2022 by the Supreme Energy Council and the government to lease a floating power ship for Aden, aiming for a capacity of 100 megawatts. That initiative faced widespread opposition and ultimately failed due to its exorbitant cost as "purchased power" reliant on fossil fuels, which obligates the government to supply fuel and pay ship rental fees. A parliamentary report in mid-2023 indicated that the proposed cost for 100 megawatts from such a ship, using mazut fuel, would approach $365 million over three years, with 30% allocated to the company as rental fees.
The company's offer suggests an annual cost of approximately $121 million for 100 megawatts produced by a floating ship using mazut fuel. This figure would double for the 200 megawatts requested by the Aden authority, especially considering global fuel price increases. Consequently, the annual cost for Aden's demand could reach $250 million for 200 megawatts, a steep price relative to the generation capacity. This substantial sum could instead be invested in sustainable electricity solutions for Aden, such as expanding the solar power plant to its full capacity of around 650 megawatts, which would largely meet Aden's current daytime electricity demand. Alternatively, this annual budget could fund the construction of a wind power plant in western Aden with the same capacity, offering a lifespan exceeding 25 years, a more viable long-term solution than a one-year lease for a mazut-fueled ship.
