More sustainable and environmentally friendly ways to meet the looming energy crisis were the subject of an inaugural lecture.

More sustainable and environmentally friendly ways to meet the looming energy crisis were the subject of an inaugural lecture delivered by an Imperial academic this month.

Richard Green, who is the Alan and Sabine Howard Professor of Sustainable Energy Business and Head of the Organisation and Management Group, delivered his lecture: ‘How can an electricity business be more sustainable?’ He talked about the UK's approach to reducing carbon emissions, which is currently based on large-scale investment in low-carbon electricity, and how this will impact on electricity companies.

Maxine Myers caught up with Richard after his lecture to discuss his thoughts on what the future holds for electricity companies.

1. 1. What is low-carbon electricity and how does it differ from the traditional methods of electricity generation?

There are three broad categories in low carbon electricity generation. They include nuclear power and renewable generation - including energy generated from waste, wind and the sun. The third is carbon capture and storage, which is the process of capturing waste carbon dioxide from large point sources, such as fossil fuel power plants, transporting it to a storage site, and depositing it where it will not enter the atmosphere. The aim is to prevent the release of large quantities of CO₂ into the atmosphere (from fossil fuel use in power generation and other industries).The first two of these technologies are already used on a large scale in the UK. For carbon capture and storage all the component technologies are in use somewhere, but they have not yet been combined at full scale.We need some demonstrator projects to show the full process working.

1. 2.  Your inaugural lecture focussed on how to make electricity sustainable. Why is sustainability so important?

It is important because we need to reduce emissions to minimise the impact that these utilities have on climate change. At the same time we also need to make sure that the electricity system continues to work correctly and is financially viable to maximise the chance that people will accept these changes.

1. 3. The government is committed to cutting greenhouse-gas emissions by 80 per cent by the middle of the century in a bid to tackle climate change.  Do you think that this target is achievable?

2. Yes – many studies, including those by the UK Energy Research Centre,which conducts research on energy sustainability at Imperial and elsewhere, have shown that there are various pathways to 2050 which reduce emissions by this amount.

3. 4. What needs to be done to encourage energy companies to invest in low-carbon electricity?

They need to know what they can expect from government policy. At the moment there is still some uncertainty for business as parts of the Electricity Market Reform package are still being finalised by the Government. Companies also need to know that the prospect of returns will be reasonable for the commercial risks that they will be bearing.

1. 5.The price of electricity has gone up. How can prices be reduced for customers?

Giving power stations the right kind of long-term contracts can reduce their risks and the cost of agreed capital that they have to pay for, which could bring prices down to consumers.  There is also a lot more that could be done in terms of energy efficiency, reducing bills by cutting consumption.

1. 6. Do you think electricity will replace coal, gas and oil especially in transport and heating?

The Committee on Climate Change recommend that we should invest to create a very low-carbon electricity system by 2030, and then use that low-carbon power in heating and transport, as well as in the applications where electricity is currently used, so I think there is every chance that it will do so.

1. 7. What is the future for electricity companies?

They need to change the way that they produce and sell electricity by combining the power with the equipment that uses it. They also have the chance to expand into selling power to meet the new demands for heat and transport.

1. 8. You are the first Alan and Sabine Howard Professor of Sustainable Energy Business, what have you been working on since your appointment?

I have been looking at the economics of investing in new energy companies – what mix of companies will work well together to meet the fluctuating patterns of demand, particularly given that the output from wind stations are variable.