The energy secretary told the Syndicat des Énergies Renouvelables in Paris today that an interconnected Europe will help to drive down energy prices.
Davey told delegates the EU’s energy liberalisation legislation needs to be “fully implemented” to allow the development of interconnectors to happen.
He said: “We must step up the integration and interconnection of European energy markets so that countries can buy clean, competitive, low carbon electricity from wherever it is cheapest.”
Davey added that “the UK and France should be better linked” and said that 5GW of interconnections between the two countries could be developed.
He highlighted that a “key project” is to examine how a North Sea offshore grid could be developed to support energy trading.
Davey said: “You heard it here first – a British minister calling for a European supergrid.”
He added: “An integrated and interconnected European energy market that bears down on costs for consumers and businesses through competition.”
The UK energy secretary also said that more should be done in research and development to allow energy intensive industries to “dramatically cut” their energy usage and carbon emissions.
Davey added that “the potential of home-grown electricity and gas production” – including shale gas – should be “unlocked” to put downward pressure on energy prices.