Thursday, November 19, 2009

Smart Grid: Honeywell awarded grant to implement transition to reliable energy grid

Honeywell Will Also Help Other Grant Recipients Implement Programs as the Country Transitions to a More Efficient, Reliable Energy Grid

Honeywell (NYSE: HON) today announced it has been awarded an $11.4-million grant from the Department of Energy (DOE) as part of the largest single energy grid modernization investment in U.S. history. The grant, one of several awarded from a smart grid funding package under the American Recovery and Reinvestment Act (ARRA), solidifies Honeywell's position as a key player in helping the U.S. transition to a more efficient, reliable and secure electric system.

"Honeywell has long been supportive of investing in our country's energy independence and these grants are essential to that end," said Roger Fradin, president and chief executive officer of Honeywell Automation and Control Solutions. "However, the hard part comes next -- rebuilding the energy infrastructure. Honeywell has the project management experience to help utilities successfully deploy their programs and forge a tighter link with customers. And we have the technology to help homeowners and businesses take control of their energy use and maximize the benefits of a smart grid."

One of only four non-utility companies to receive funding, Honeywell will use the grant to support a critical peak pricing response program that will help commercial and industrial facilities in the Southern California Edison (SCE) service territory automatically implement energy management strategies to reduce costs and improve efficiency. The program will support nearly 700 customers as SCE and other California utilities move to critical peak pricing -- a program that offers rate discounts during the summer months to customers who can reduce or shift power during periods of peak electrical consumption.

The new rate structure will see prices spike during periods of peak demand, approximately 10 to 15 days per year. SCE will send a notice prior to any increase and Honeywell will install technology that allows customers to automate load-shedding strategies that reduce energy use during these periods. Based on open automated demand response (OpenADR) standards and powered by Tridium's Niagara(AX) Framework® and JACE® controller, the system will receive the utility's signal, communicate with the facility's building automation system and make changes based on parameters the customer sets. This could include turning off banks of lights, cycling equipment on and off, or temporarily increasing temperature set points in the facility.

In addition to installing the technology, Honeywell will provide customer outreach, education and engineering services, as well as ongoing support.

"Honeywell's program integrates business customers with a smarter grid," said Larry Oliva, director, Tariff Programs and Services, Southern California Edison. "Our customers will have the ability to decide how they want to respond to pricing changes, and the subsequent reduction in energy use will help us provide affordable, clean power over the long term."

Honeywell is also helping other organizations implement projects tied to the smart grid investment grants, including an advanced metering infrastructure (AMI) program for the city of Quincy, Fla. Honeywell will manage the installation of smart meters throughout the city and provide technology to automate commercial load-shedding strategies, similar to the SCE program.

Honeywell also won ARRA grants for the research and development of technology that ties into the smart grid. For example, the company is testing solutions that will significantly reduce down time and failures for the growing fleet of wind turbines in the United States. Researchers are also developing a controls infrastructure for optimizing renewable energy micro-grids.

The DOE funding, as well as Honeywell's involvement in other grants, reflects the company's expertise in smart grid services and technologies. Honeywell Utility Solutions, part of the Building Solutions business, has delivered demand response programs for almost 20 utilities in the United States and Canada. It specializes in all aspects of demand response from program design and load-control technology to customer recruitment and support.

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