Iberdrola Chairman Ignacio Galán has criticised European governments for failing to produce clear energy policies that encourage investment.
Speaking at the Clean Energy Forum in Qatar, Galán said that the European energy sector is suffering because uncertainty over energy policy is driving investors away to North America and emerging markets.
He also called for a new agreement over climate change to be finalised by 2015.
"Considering the vast impact that too much intervention and wrong energy policy have in the economy as a whole, governments should focus on defining a clear energy policy, rather than playing politics with energy," said Galán.
During a speech in Doha, Galán noted that traditionally the electricity industry has performed solidly because of predictable returns. However, increased risks as a result of changing and non-predictable regulatory frameworks is driving investment away.
He also criticized some European countries for incentivising the deployment of immature renewable energy technologies at the expense of conventional and less costly technologies. However Galán believes that boosting investment in smart grids will help to reinforce network infrastructure and result in improves service quality.
Galán also said that international climate efforts should be stepped up, not only with an international agreement at the next UNFCCC talks, but also by strengthening existing regional initiatives such as the European emissions trading scheme (ETS.
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