Dubai is now setting the pace for regional solar development, with the latest bids promising a record low electricity price. Early leader Abu Dhabi is back in the race, prequalifying companies to build its second solar plant.

The UAE is tendering for two large solar power projects as it seeks to reduce its reliance on gas for electricity generation. Dubai has been the most active of the emirates, tendering for the third phase of a 5GW solar park. However, Abu Dhabi, which built the...