RPT-FEATURE-"Smart cities" mean rivalry in power, construction

By Pete Harrison

BRUSSELS, Feb 10 (Reuters) - In the city of the future, could power suppliers be rivalled by construction firms? An embryonic movement is growing in Europe to build "smart cities" that will challenge the status quo.

The vision is fuelled by the fear of climate change and the need to find green alternatives to dirty coal, unpopular nuclear power and unreliable gas imports from Russia.

Such cities would become self-contained units, their buildings gleaning energy from the powerful weather systems sweeping across their roofs and feeding it down to homes below and vehicles in the streets.

Electric cars in the garages would double up as battery packs for when energy supplies are scarce. Every scrap of waste food, garden trimmings and even sewage would be used to ferment gas.

Facing up to the end of their traditional business model, utilities are mapping a long-term survival strategy.

"A very different business model will emerge over time," said Gearoid Lane, managing director of British Gas New Energy, the UK utility's green division. "If any energy company ignores the long-term impact on future fossil-fuel backed energy sales, they will be in for a shock."

The idea of self-sufficient cities is gaining currency in the European Union, which has set itself the ambitious task of cutting carbon dioxide (CO2) emissions to a fifth below 1990 levels by 2020 -- the biggest cuts anywhere in the world.

"In 25 years from now, millions of buildings...will be constructed to serve as both 'power plants' and habitats," says writer and economist Jeremy Rifkin, who has advised governments and corporations on tackling climate change and energy security.