Honeywell receives Department of Energy smart grid grant
Honeywell (NYSE: HON) has been awarded an$11.4-million grant from the Department of Energy (DOE) as part of the largestsingle energy grid modernization investment in U.S. history.
One of only four non-utility companies to receivefunding, Honeywell will use the grant to support a critical peak pricingresponse program designed to help commercial and industrial facilities in theSouthern California Edison (SCE) service territory automatically implement energy management strategies to reduce costs and improve efficiency. Theprogram will be implemented to support nearly 700 customers as SCE and other California utilitiesmove to critical peak pricing — a program that offers rate discounts duringthe summer months to customers who can reduce or shift power during periods ofpeak electrical consumption.
The new rate structure will see prices spike duringperiods of peak demand, approximately 10 to 15 days per year. SCE will send anotice prior to any increase and Honeywell will install technology that allowscustomers to automate load-shedding strategies that reduce energy use duringthese periods. Based on open automated demand response (OpenADR) standards andpowered by Tridium’s Niagara(AX) Framework and JACE controller, the system willreceive the utility’s signal, communicate with the facility’s buildingautomation system, and make changes based on parameters the customer sets. Thiscould include turning off banks of lights, cycling equipment on and off, ortemporarily increasing temperature set points in the facility.
In addition to installing the technology, Honeywellwill provide customer outreach, education and engineering services, as well asongoing support.
Honeywell also won ARRA grants for the research anddevelopment of technology that tie into the smart grid. For example, thecompany is testing solutions that are said to significantly reduce down timeand failures for the growing fleet of wind turbines in the United States.Researchers are also developing a controls infrastructure for optimizingrenewable energy micro-grids.
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