Relativistic electron beam-plasma devices have the potential as one of the newest high-power microwave sources. In this paper, the process of microwave radiation at ωp from beam-plasma interaction is investigated for nb/np≈ 0.01, where nb is the beam electron density and np the plasma density. The main instabilities have been analysed using the linear and nonlinear (Zakharov) dispersion relations. The dispersion relation of parametric decay by which unstable electrostatic waves are converted into electromagnetic waves has been derived. From this, the radiation rate of a beam-plasma system has also been obtained. Finally, we model how the energy flows from beam kinetic energy to plasma waves, then to EM radiation and plasma heating.