The United Arab Emirates may use more solar energy for its power grid and to produce hydrogen as prices fall of solar.

Two of the 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 two gigawatt photovoltaic power plant in the emirate.

They are partnering with Electricite de France S.A. and China’s Jinko Power Technology Co.

The UAE is “revising and refreshing our energy plan and roadmap,” Al Olama said during a conference. “These types of prices are very competitive.”

Al Olama added, Lower solar prices may also spur the manufacturing of green hydrogen in the UAE.

The fuel – made using renewable energy and therefore without creating carbon emissions – has become more and more popular amid the fight against climate change.

But its use is still limited as it is very expensive.

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