Case Study for the IRENA Project Navigator
60 MW Wind Project
Klara Bohr
Wind Farm Case Study: Introduction
In a Nutshell:
• 60 MW wind farm project
• Location: Yemen (i.e. Western Taii’z, coastal area of southwestern Yemen)
• A pre-existing project
• Project’s implementation currently being planned by the Yemeni Government
• Project financing already secured
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Screening
Screening: PEST/PESTEL Model
Category
Important Factors
Political
• A democratic republic with a presidential representative
• Politically fragmented: civilian population organised in tribal, regional and religious groupings)  Unstable
• Legislation: no imminent changes forseen
Economic
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Social
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Technological
• Common technology that is tested, known and widely used to ensure a high quality level
Environmental
• Problems: Water scarcity, soil erosion, water contamination
Legislative
• National Strategy for Renewable Energy and Energy Efficiency (Eff: 2010) Main goal: 15% REs by 2025.
• Electricity law (2009): Aims to ensure the security of the country’s electricity-generating capacity
• Yemen ratified IRENA’s Statutes in 2012.
One of the poorest countries in the Middle East Region
Ease of Doing Business Ranking 2013: 118 out of 185 (2012:101) (The World Bank Group, IFC, 2013)
Petroleum accounts for roughly 25% of GDP and 70% of government revenue (IndexMundi, 2013b)
Inflation rate (consumer prices): 11.4% (2012 est.) (IndexMundi, 2013b)
Unemployment rate: 35% (2003 est.) (IndexMundi, 2013b)
Inefficient and obsolete financial infrastructure (World Bank, 2013)
Low human development: HDI ranking 2012: 160 out of 187 total (0,458) (UNDP, 2013 a, p. 18)
High population growth rate 2012: 2,575% (IndexMundi, 2013 b)
Population living below the poverty line: 45.2% (2003) (IndexMundi, 2013 b)
Very young population: (2012 est.): 42,5 % 0-14 years; 21,1 % 15-24 years; 30,1% 25- 54 years; and only
6,2% over 55  Median age: 18,3 year (IndexMundi, 2013 b)
• Only 63.9% of the population over 15 is literate (reading/writing abilities) (IndexMundi, 2013 b)
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Screening: PEST/PESTEL Model
After creating a PESTEL Model, opportunities and threats must be identified in order to plan necessary actions. A few issues and actions were
identified for this Case Study. Yemen’s economic situation was identified as a possible threat. In addition, the financial infrastructure is
obsolete and inefficient. In order to limit the risks, it would make sense to rely on international funding institutions, such as the World Bank
or the IFC. The literacy level, as well as the unemployment rate, is high. Finding trained labour could be a challenge since this is Yemen’s first
wind project. Yemen’s typical environmental issues (e.g. droughts) will not be affected by a wind project. The National Strategy for
Renewable Energy and Energy Efficiency (2010) offers a unique opportunity as it aims to increase the country’s RE share to 15% by 2025. This
goal could be achieved through this project alone.
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Sources
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Sources
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Sources
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