Honeywell Awarded Smart Grid Grant From U.S. Department Of Energy
Honeywell Will Also Help Other Grant Recipients Implement Programs as the
Country Transitions to a More Efficient, Reliable Energy Grid
MINNEAPOLIS, Nov. 17, 2009 – 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 NiagaraAX 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.
Honeywell has given utilities combined control of more than 1 gigawatt of peak
consumption, which is equivalent to the generation capacity of a medium- to
large-sized plant. The company also provides smart metering, and energy and
water conservation solutions to utilities. For more information, visit www.honeywell.com/utility.
Honeywell International (www.honeywell.com) is a Fortune 100 diversified technology
and manufacturing leader, serving customers worldwide with aerospace products
and services; control technologies for buildings, homes and industry;
automotive products; turbochargers; and specialty materials. Based in Morris
Township, N.J., Honeywell’s shares are traded on the New York, London, and
Chicago Stock Exchanges. For more news and information on Honeywell, please
visit www.honeywellnow.com. Honeywell Building Solutions is part
of the Honeywell Automation and Control Solutions business group, a global
leader in providing product and service solutions that improve efficiency and
profitability, support regulatory compliance, and maintain safe, comfortable
environments in homes, buildings and industry. For more information about
Building Solutions: www.honeywell.com/buildingsolutions.
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