Over the last decade, the demand for energy services in Yemen has accelerated, as a result of economic development and population expansion. Electricity demand, as indicated by the Yemen Public Electricity Corporation (PEC) has reached an increase of 9.6 percent annually since 2000 (PEC, 2006). PEC estimated that this rapid growth rate would continue in the long term. The rapid increase of electricity demand puts additional pressure on the poorly performing electricity supply industry. The electricity sector of Yemen has been part of social and political agenda of the government.