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William Taylor, PE CEM
                Director of Engineering
                Honeywell Building Solutions
                Energy & Environmental Solutions


Are We Ready?
 Honeywell.com




                          Are We Ready?




    •   Increased Demand
    •   Increased Generation       • Increased Storm Activity
    •   Business Impact?           • Power Distribution and
    •   Energy Security              Reliability
                                   • Business Impact?




2                                       Copyright © 2013 Honeywell International Inc. All rights reserved.
 Honeywell.com




                                 Supply Side Factors
• What Are The Drivers? Cheaper, Cleaner, and More Reliable Energy
• Two Challenges Facing Us Today;
    – Need additional generation
    – Must address our aging infrastructure
• US Average Outage Duration Is 120 Minutes And Getting Worse;
    – Projected to be > 140 minutes by 2020,
    – Rest of industrialized world is < 10 minutes and getting better
• Infrastructure Designed for Peak Conditions Which Occur ≤ 1% of the Time
• New Challenges That We Must Address
    – Increase Diversity of Power Sources
       • Renewable portfolio standards
    – Increasing Environmental Requirements
    – Escalating Security Concerns
       • On-shore resources
       • Use “non-traditional” resources


3                                                         Copyright © 2013 Honeywell International Inc. All rights reserved.
 Honeywell.com




                               Load Side - Factors
    • Changing Demands On The Grid
      – Integration of electric vehicles
      – By 2020, entertainment, computers and gadgets will account for 45% of electricity
        used in the home and need the equivalent of 14 average‐sized power stations to
        power them, increasing demand for near‐perfect power.
    • Increased Demand
    • Energy Efficiency
      – Buildings
      – Public facilities
    • Demand Limiting
      – Frequency regulation
      – Demand response
      – Demand limiting
    • Economic growth


4                                                              Copyright © 2013 Honeywell International Inc. All rights reserved.
 Honeywell.com




     Damaging Storms Seem To Be More Frequent

    • Power Outages
       – More frequent and longer in duration
       – One area of Maryland – 6 weeks of outages in the last 18 months
    • Aging infrastructure more susceptible to damage
    • Costly to upgrade infrastructure on a large scale
       – How do we pay for it?
       – What is the cost of “do nothing” to the economy?
    • Grid Stability
       – Increased use of renewable energy
       – Distributed generation and the associated interconnections
       – Renewable and distributed generation – does the grid provide back-up?




5                                                   Copyright © 2013 Honeywell International Inc. All rights reserved.
 Honeywell.com




                                 We Can Prepare
    • Traditional Efficiency Improvements
       –   Building management system
       –   Lighting retrofits
       –   HVAC upgrades
       –   Building envelope improvements
       –   Usage transparency through advanced metering
    • On-site Generation and Storage Capacity
       –   Gas turbines
       –   Diesel generators
       –   Power storage (thermal, electric)
       –   Renewable energy (PV, wind turbines)
       –   Electric vehicle infrastructure
    • Implement Advanced Controls
       – Demand response programs
       – Balance system supply and demand
       – Optimization of power system based on performance metrics
    • Operate with Utility Grid or in Island Mode
       – Automatic connect and disconnect from main grid to meet specific performance outcomes

6                                                             Copyright © 2013 Honeywell International Inc. All rights reserved.
 Honeywell.com




    What Are the Ripple Effects of Preparing?
    • Renewable Energy
      – Who provides back-up? At what cost?
      – Grid stability when renewable energy drops off
    • Distributed Generation
      –   Who provides back-up and at what cost?
      –   Fuel supplies during emergencies? In general?
      –   Approvals – local and state
      –   “Mini-utilities” and Micro-grids– can they exist? Who regulates?
    • Businesses
      – Energy Efficiency – good business – can they obtain needed ROI?
      – Energy Security – at what price?
      – Availability of low priced fuel for micro-grids and distributed
        generation


7                                                      Copyright © 2013 Honeywell International Inc. All rights reserved.
 Honeywell.com




    Thank You!




8            Copyright © 2013 Honeywell International Inc. All rights reserved.

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Are We Ready?

  • 1. William Taylor, PE CEM Director of Engineering Honeywell Building Solutions Energy & Environmental Solutions Are We Ready?
  • 2.  Honeywell.com Are We Ready? • Increased Demand • Increased Generation • Increased Storm Activity • Business Impact? • Power Distribution and • Energy Security Reliability • Business Impact? 2 Copyright © 2013 Honeywell International Inc. All rights reserved.
  • 3.  Honeywell.com Supply Side Factors • What Are The Drivers? Cheaper, Cleaner, and More Reliable Energy • Two Challenges Facing Us Today; – Need additional generation – Must address our aging infrastructure • US Average Outage Duration Is 120 Minutes And Getting Worse; – Projected to be > 140 minutes by 2020, – Rest of industrialized world is < 10 minutes and getting better • Infrastructure Designed for Peak Conditions Which Occur ≤ 1% of the Time • New Challenges That We Must Address – Increase Diversity of Power Sources • Renewable portfolio standards – Increasing Environmental Requirements – Escalating Security Concerns • On-shore resources • Use “non-traditional” resources 3 Copyright © 2013 Honeywell International Inc. All rights reserved.
  • 4.  Honeywell.com Load Side - Factors • Changing Demands On The Grid – Integration of electric vehicles – By 2020, entertainment, computers and gadgets will account for 45% of electricity used in the home and need the equivalent of 14 average‐sized power stations to power them, increasing demand for near‐perfect power. • Increased Demand • Energy Efficiency – Buildings – Public facilities • Demand Limiting – Frequency regulation – Demand response – Demand limiting • Economic growth 4 Copyright © 2013 Honeywell International Inc. All rights reserved.
  • 5.  Honeywell.com Damaging Storms Seem To Be More Frequent • Power Outages – More frequent and longer in duration – One area of Maryland – 6 weeks of outages in the last 18 months • Aging infrastructure more susceptible to damage • Costly to upgrade infrastructure on a large scale – How do we pay for it? – What is the cost of “do nothing” to the economy? • Grid Stability – Increased use of renewable energy – Distributed generation and the associated interconnections – Renewable and distributed generation – does the grid provide back-up? 5 Copyright © 2013 Honeywell International Inc. All rights reserved.
  • 6.  Honeywell.com We Can Prepare • Traditional Efficiency Improvements – Building management system – Lighting retrofits – HVAC upgrades – Building envelope improvements – Usage transparency through advanced metering • On-site Generation and Storage Capacity – Gas turbines – Diesel generators – Power storage (thermal, electric) – Renewable energy (PV, wind turbines) – Electric vehicle infrastructure • Implement Advanced Controls – Demand response programs – Balance system supply and demand – Optimization of power system based on performance metrics • Operate with Utility Grid or in Island Mode – Automatic connect and disconnect from main grid to meet specific performance outcomes 6 Copyright © 2013 Honeywell International Inc. All rights reserved.
  • 7.  Honeywell.com What Are the Ripple Effects of Preparing? • Renewable Energy – Who provides back-up? At what cost? – Grid stability when renewable energy drops off • Distributed Generation – Who provides back-up and at what cost? – Fuel supplies during emergencies? In general? – Approvals – local and state – “Mini-utilities” and Micro-grids– can they exist? Who regulates? • Businesses – Energy Efficiency – good business – can they obtain needed ROI? – Energy Security – at what price? – Availability of low priced fuel for micro-grids and distributed generation 7 Copyright © 2013 Honeywell International Inc. All rights reserved.
  • 8.  Honeywell.com Thank You! 8 Copyright © 2013 Honeywell International Inc. All rights reserved.