The former Labour Government adviser said the private sector could not be relied on to deliver all of the money needed to develop a new generation of nuclear reactors and large-scale renewable energy projects.
He said, "Infrastructure on this scale is going to need public-private partnership with strong Treasury intervention to signal where the investment should take place." Sir David added that Government-led investment in low-carbon energy infrastructure would stimulate the economy, create jobs and end the reliance on imported fossil fuels.
If heeded, such demands for Government investment could revive the proposed new nuclear reactor at Oldbury in Gloucestershire, which RWE Npower and E.On withdrew from in March, as well as ensuring that EDF goes ahead with the Hinkley Point C nuclear project in Somerset, said Sir David.
Treasury investment in renewable energy projects could also result in the approval of consortium Corlan Hafren's business plan to develop a £32 billion Severn Barrage project between south Wales and Weston-super-Mare, which was previously rejected by the Government on the grounds of cost.
Sir David's demands are supported by the findings of a recent study commissioned by EDF which suggest that a nuclear revival could boost the UK economy by £5 billion a year. Investment in new nuclear plants could also create more than 32,000 additional jobs and boost annual exports, according to the study.