Honeywell Launches Full-Scale Smart Grid Project to Reduce Strain on Electrical Networks in Thames Valley

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January 24, 2012
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Honeywell Launches Full-Scale Smart Grid Project to Reduce Strain on Electrical Networks in Thames Valley

LONDON, January 24, 2012/PRNewswire/ --

   
          - Bracknell Pilot Proves Automated Demand Response Can Cut Peak Energy Use
            in Commercial and Industrial Facilities, Leads to Broad Deployment

    Honeywell (NYSE: HON) today announced a smart grid project that will help SSE plc
connect up to 30 commercial and industrial buildings in the Thames Valley area west of
London, and temporarily reduce electricity consumption when overall use spikes. This will
help alleviate the potential for future transmission and distribution bottlenecks as the
peak demand for energy grows. It will also enable building operators to decrease their
energy use, utility bills and carbon dioxide emissions.

    (Logo: http://photos.prnewswire.com/prnh/20071030/AQTU029LOGO)

    As part of the euro 30-million New Thames Valley Vision (NTVV) project recently
awarded to Scottish and Southern Energy Power Distribution (SSEPD) by U.K. energy
regulator Ofgem, Honeywell will install automated demand response (Auto DR) technology in
the selected facilities. The utility will then work with these customers to trim peak
electricity use, and reduce strain on the local networks and substations, which are
nearing capacity - creating a more robust, agile grid without the disruption and expense
which sometimes accompany major infrastructure upgrades.

    "NTVV has the potential to revolutionise our existing networks, and help us to manage
resources and equipment more effectively as the U.K. heads toward a low-carbon economy,"
said Stewart Reid, NTVV Project Director at SSEPD. "We'll need to collaborate with our
customers to achieve these goals and see Auto DR as a one of the key tools to make that a
reality."

    The project builds on a successful Auto DR demonstration in Bracknell, England, where
Honeywell proved that a commercial building could quickly shed up to 45 percent of its
electrical load during peak hours. The result of the pilot prompted SSE to expand the use
of the technology. Honeywell expects the full-scale project will give the utility the
ability to shave approximately 10 megawatts of energy use when necessary.

    "A smarter grid is essential to balancing supply and demand in the most efficient,
sustainable way possible," said Paul Orzeske, president of Honeywell Building Solutions.
"But utilities also need to connect with their customers in new ways and Auto DR creates
those bonds. It's flexible enough to meet a variety of energy challenges, from daily grid
congestion issues to intermittency concerns that stem from micro-generation."

    Honeywell will use several technologies in its portfolio, including offerings from
Honeywell's Akuacom and Tridium businesses, to connect SSE with buildings on the utility's
low-voltage Bracknell network. The Demand Response Automation Server (DRAS) from Akuacom
allows the utility to alert customers when energy use is expected to peak and create grid
congestion. At each facility, a Niagara(AX) Framework-based controller from Tridium will
help automate load-shedding strategies during these periods. The controller listens for
signals from the DRAS and communicates with the building management system, which then
makes short-term changes based on parameters the customer sets in advance - e.g., turning
off banks of lights or elevators, or cycling equipment on and off.

    In addition to providing and implementing the technology, Honeywell will offer
consulting and engineering services to help the customers develop shed strategies, looking
for ways to briefly reduce energy use with minimal impact to operations. Honeywell will
also investigate opportunities to decrease day-to-day consumption, which will help
participants reduce their operating costs and environmental impact, and align with Carbon
Reduction Commitment legislation.

    As part of the agreement with Ofgem, SSE and Honeywell will also publish details on
the project and its impact to provide insight for other distribution network operators
(DNOs) across the United Kingdom.

    Automated Demand Response

    Buildings account for more than 70 percent of electricity use globally. Auto DR
enables utilities to call on commercial facilities to automatically decrease consumption
during times of peak demand, reducing the load on the electrical network. Building
operators work with an energy expert like Honeywell to develop custom strategies to
decrease their energy use, utility bills and carbon dioxide emissions. DNOs, in turn, are
able to alleviate grid congestion caused by growing demand and the pressure it puts on
transmission and distribution equipment. The prevailing alternative is to replace or
reinforce the sub-stations, electrical cables and associated equipment, which requires
significant capital investment and construction in highly developed urban areas.

    Previous demand response programmes have been largely manual and cumbersome to
initiate; as a result, building operators had to dedicate the necessary resources to
participate and utilities couldn't count on a consistent response. The Akuacom and Tridium
technologies are able to interact with virtually any building system, providing a reliable
decrease in consumption with minimal input. That's because the solution is based on open,
industry-accepted standards.

    Honeywell and the Smart Grid

    Honeywell has a legacy of working with both utilities and their customers, giving it a
unique perspective on how to quickly realize the benefits of the evolving grid. With
controls in more than 150 million homes, 10 million buildings and thousands of industrial
sites, and experience managing demand response and energy efficiency programmes for more
than 100 utilities, Honeywell has the offerings and experience to empower smart energy
users.

    Honeywell International (http://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 http://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, access
http://www.honeywell.com/buildingsolutions.

    This release contains "forward-looking statements" within the meaning of Section 21E
of the Securities Exchange Act of 1934. All statements, other than statements of fact,
that address activities, events or developments that we or our management intend, expect,
project, believe or anticipate will or may occur in the future are forward-looking
statements. Forward-looking statements are based on management's assumptions and
assessments in light of past experience and trends, current conditions, expected future
developments and other relevant factors. They are not guarantees of future performance,
and actual results, developments and business decisions may differ from those envisaged by
our forward-looking statements. Our forward-looking statements are also subject to risks
and uncertainties, which can affect our performance in both the near- and long-term. We
identify the principal risks and uncertainties that affect our performance in our Form
10-K and other filings with the Securities and Exchange Commission.

Source: Honeywell

Louisa Kellie, +420-242-442-309, louisa.kellie@honeywell.com; Aaron Parker, +1-763-954-4257, aaron.parker@honeywell.com, both of Honeywell

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