smart grid / ibm global intelligent utility network conference, raleigh, june 2010 / presentation

Energy Efficiency, Demand Response and Smart Grid

Luca MazzeiVP Strategy & Marketing, Honeywell Building Solutions

June 10th, 2010

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Air Traffic Modernization

Biofuels Green Buildings Reduced Emissions

Industrial Process Efficiency Energy Efficiency, Demand Response & Smart Grid

Energy Performance Contracts

Fuel Efficiency

Nearly 50% of Honeywell’s product portfoliois linked to energy efficiency

Honeywell At A Glance

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• Top notch project /

program management

• Global reach/ footprint

• Growing offering portfolio

Honeywell Building Solutions (HBS) Profile

Project & Service Delivery Excellence Worldwide

2009: $2.5B+ Sales

ServiceProjects Utility SolutionsEnergy & Environment

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Unique Integrated Portfolio

Energy Efficiency

Demand Response

Smart Grid /Smart Metering

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U.S. Energy Consumption (all sources)

Building Automation Can Control 66% Of Energy Consumption In Homes And Buildings

US DOE Buildings Handbook, 2008

Industry (gas)32%

Transportation (oil)28%

Buildings(electricity) 40%

Residential22%

Commercial18%

Lights 26%Heating 14%

Cooling 13%Water Heat 7%

Ventilation 6%Office Equipment 6%

Refrigeration 4%Computers 3%

Cooking 2%Other 13%

Heating 31%Water Heat 12%Cooling 12%

Lights 11%Refrigeration 8%

Electronics 7%Wet Clean 5%Cooking 5%

Computers 1%Other 4%

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• Lighting / Appliance Programs• HVAC Energy Efficiency• Home Performance with ENERGY STAR®

• New Construction• Multi-family• Energy Affordability• Cool Control• Smart Vent

Residential Energy Efficiency Leadership

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Progress Energy

• Turn-key program, 3-years– Marketing – Neighborhood Launch events,

door to door canvassing, & direct mailing– Homeowner education/ energy assessment of

each home– Installation (free of charge to residents) of

selected EE measures– Tracking, reporting, and program management

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Commercial Energy Efficiency Pioneers

• Energy Savings Performance Contracting: a proven, effective solution

• A comprehensive “self-funded” program

– New equipment and technology to modernize buildings paid by guaranteed energy and operational savings

• $4.5B in guaranteed savings through our existing contracts

Before Program - Escalating Costs

After Retrofit

2005 2007 2009 2011 2013 2015

Savings Pay for Site Enhancements

From Pioneers in “Traditional” Energy Efficiency...

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Building Optimization Analytics

Energy Management

Fault Detection and Diagnostics

Control System Optimization

2 Equipment Performance Monitoring

3

1

4

...to Next Generation Energy Optimization

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Unique Integrated Portfolio

Energy Efficiency

Demand Response

Smart Grid /Smart Metering

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• 1M+ demand response devices installed• BG&E program

– 450,000 load control devices40 months47% penetration

– Comprehensive marketing– 24/7 professional call center

Honeywell certified field technicians– Honeywell UtilityPRO™ and switches

UtilityPRO™: Leader in Residential DR

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Prestige System: Enabling Homeowners

Moving to time-of-use “smart” programming & enable home energy optimization based on actual cost

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Multi-site Energy Efficiency/ DR Solutions

• Honeywell’s Novar multi-site remote energy efficiency/peak shaving– 6GW currently under management

• Key multi-site customers:– Wal-Mart, Home Depot, Costco,

Staples• Typical results

– 20-25% energy efficiency– 10-20% peak load reduction

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Honeywell ARRA Project in California – Automated Commercial & Industrial Demand Response

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Honeywell ARRA Project in California – Automated Commercial & Industrial Demand Response

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Honeywell ARRA Project in California – Automated Commercial & Industrial Demand Response

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Honeywell ARRA Project in California – Automated Commercial & Industrial Demand Response

Honeywell Proprietary

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Honeywell ARRA Project in California – Automated Commercial & Industrial Demand Response

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Unique Integrated Portfolio

Energy Efficiency

Demand Response

Smart Grid /Smart Metering

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Florida Power and Light

• Smart Meter Deployment: 4.3M units– Project Management– Hiring & Training: 100+ field techs– Call Center/Customer Service– Workforce Management System– Facility and Inventory Management

• Energy Smart Florida– Management & deployment of home

energy management technology

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City of Tallahassee, Florida

• A smarter Smart Grid:– Electric, Gas and Water Smart Grid– Advanced AMI Features– Meter Data Management System– In-Home Communication– Demand Response

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Smart Grid Vision

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Actions That Can Be Taken Today

• Incentivize energy efficiency — the “first” fuel– Cheapest and cleanest fuel– “Energy efficiency offers a vast, low-cost energy resource for

the U.S. economy – but only if the nation can craft a comprehensive and innovative approach to unlock it.” Unlocking Energy Efficiency in the U.S. Economy - McKinsey Global Energy and Materials, July 2009

• Demand Response is an essential prerequisite to the widespread use of renewables

• Incentivize utilities to promote negawatts rather than build megawatts