Falling costs will drive UAE to use more solar power for utility needs

Abu Dhabi: The UAE may use more solar energy for its power grid and to produce hydrogen as prices fall, a government official said. Two local companies have offered to supply solar power from an Abu Dhabi project at a record-low price, according to Sharif Al Olama, under-secretary at the UAE's Ministry of Energy & Infrastructure.

Abu Dhabi National Energy Co. (also known as Taqa), and Masdar Abu Dhabi Future Energy Co. have said they can sell power at $1.35 per kilowatt per hour from a new 2 GW photovoltaic plant in the emirate. They are partnering with Electricite de France SA and China's Jinko Power Technology Co.

The UAE is "revising and refreshing our energy strategy and roadmap," Al Olama said. "These kinds of prices are very competitive."

Lower solar prices may also spur the manufacturing of green hydrogen in the UAE, said Al Olama. The fuel - made using renewable energy and thus without creating carbon emissions - has become increasingly popular amid the fight against climate change. But its use is still limited because it's expensive.

"What we are seeing in terms of competitiveness in prices of solar PV, I believe that will form part of our future for hydrogen," Al Olama said.