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Yemen, Republic of: Electricity Distribution Loss Reduction Program
(Community Development Carbon Fund)

UNFCCC Reference No.: 9557

Project Description:
This Program of Activities (POA) is an initiative of the Public Electricity Corporation of Yemen (PEC) operating under the Ministry of Electricity. PEC is the exclusive operator of the electricity grid in Yemen and is state owned. 

The program aims to reduce greenhouse gas emissions by improving the quality of supply and technical efficiency of the electricity sector of Yemen. All activities to be implemented under this PoA aim at reducing the technical losses to which the PEC grid is subject to, by upgrading distribution lines, redesigning the set-up of the distribution network including the construction of new lines and intermediate power substations. The PoA also includes the installation of metering equipment to improve the management system. Activities will be pursued through 7 or 8 CPAs across 18 regions of Yemen and implemented by electricity substations, stations operators and local/regional control centers over a period that runs from 2007-2016.

The POA is a blended carbon finance operation with the Yemen Power Sector Project, financed by IDA. The POA would generate an estimated 75,000 tCO2e per year. The CDCF will purchase a total of 125,000 tons of CO2 equivalent by 2013.

Current Context:
The Yemenite power sector is characterized by its total reliance on fossil fuel for power generation (around 49% diesel and 51% fuel oil) and;  the lowest access to electricity in the region, with only 53% of the total population having access to (including self-generation) electricity. The electricity transmission and distribution network in Yemen is overstretched, resulting in high losses and frequent outages/interruptions in electricity supply with an average load shedding over 20% of the peak demand. In 2008, the Loss Reduction Department of PEC estimated the distribution losses to be 24.65% of the power produced, which includes technical and non-technical losses.

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