An investment of £845m in the European Union’s energy network is needed over the coming decade to avoid a crisis, peers have warned.
A House of Lords inquiry found there was sufficient money held by institutional investors to construct the infrastructure required for Europe’s future power needs.
But it said this was being held back by a lack of a clear policy from the EU and member states, including the UK, on how to deliver secure, affordable low-carbon energy.
The cross-party EU Sub-Committee on Energy produced its report after an inquiry lasting eight months.
It said it had a growing sense of “alarm at the degree of uncertainty and complacency about affordable, secure and low carbon energy supplies”.
Peers also attacked the UK Government for failing to set a target for how much energy will be delivered from renewable sources by 2030.
It called for the establishment of a greenhouse gas reduction target of 40% compared to 1990 levels, rising to 80% by 2050.
Charirman Lord Carter of Coles said: “It is clear to us that investment is urgently required, notably in a low-carbon, interconnected and innovative energy system that makes us less reliant on imports of highly volatile and dirty fossil fuels.
“Such investment would help to deliver secure and low carbon energy, boost European economic growth, and stabilise household and industrial costs.
“The value of energy companies has slumped since 2008, the public purse is severely constrained, but more than enough money is around in the investment community.
“This should be a great time to invest in long term assets, such as energy, but clear policy is needed in order to release it.”