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Tue 24 Aug 2010 05:22 PM

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Yemen warned to spend $5bn on power sector

Consultancy McKinsey advises government to consider alternative energies.

Yemen warned to spend $5bn on power sector
YEMEN POWER: Natural gas and coal are still the cheapest feedstocks to generate electricity in the country. (Getty Images)

Yemen will need to spend another $5bn on the development of its electricity sector over the next eight years, a consultancy has warned the country.

Al Hayat daily, cited by Dow Jones, said that US firm McKinsey had prepared a roadmap that included alternative energy sources as substitutes to diesel and fuel oil.

New projects should focus on the power generation and transmission sectors, the newspaper added.

McKinsey said that Yemen could boost power production capacity by 45 percent by using natural gas, 40 percent by using coal, and as much as three percent through the use of wind power.

Natural gas and coal are still the cheapest feedstocks to generate electricity in the country, the report added.