Honeywell Smart Grid Perspective July 2009 Honeywell Smart Grid Perspective Kevin Lauckner, Kevin.Lauckner@Honeywell.com

Services Provided to Over 10 Million Utility Customers Honeywell Portfolio Aerospace Automation & Control Solutions Specialty Materials Transportation & Power Systems World’s premier supplier of products for airlines, military aircraft, and spacecraft. Global leader in solutions to make homes and buildings more efficient, safer and comfortable. World leader in materials such as nylon and polyester that make lives better. World’s leading innovator of auto turbochargers and best known consumer automotive product brands. Utility Solutions Smart Grid Demand Response Energy Efficiency Services Provided to Over 10 Million Utility Customers

Honeywell Energy Technologies Public Utilities Industrial Utilities Industrial Process Plants Carbon Capture & Sequestration Advanced Energy Solutions Steam, power Renewable Energy Energy & Carbon Dashboard CHP: Multi-objective Optimization One Wireless Sensor Networks Grid Smart-grid solutions (Demand-Response, Energy Efficiency) Gen3 Solar Bio-Diesel Homes & Buildings BCHP @ Ft. Bragg Energy Perf. Contracts Local Poly-generation (CHP) Building Optimization Electricity, heating, cooling Renewable Integration Multi-site Business Solns. Versatile Energy Resource Allocation (VERA) Insulating Foam

Realization of Smart Grid Benefits Smart Grid can enable Consumer awareness of energy consumption Widespread Energy Efficiency reducing overall demand Widespread Demand Response to reduce peak demand Integration of renewables and distributed generation/storage Steps to realization of Smart Grid benefits Variable pricing Meters capable of providing on-demand reading Easy to use automation & controls Network & medium agnostic standards for communication Smart Grid: Optimization of overall Generation, Distribution & Consumption Network

Building Energy Management Systems Buildings consume 40% of energy in the US 72% electricity, 55% natural gas Innovation in Building Controls provide Energy Efficiency (EE) HVAC, lighting, etc. Distributed resource management Generation, storage Demand prediction Buy vs. sell decisions Multi-fuel optimization Participation in energy markets Automated demand management in response to utility signals Optimal use of local storage and backup generation Building controls are the key to all forms of clean energy: EE, DR & renewable integration

Residential Vision: Home Energy Management Objective Easy to use automation providing smart grid functionality in such a way to maximize benefits to consumers, utilities & the environment Key Features Utility communicates prices, load shedding signal, etc. Easy-to-use controls automate routine tasks, remove the burden from humans, and ensure completeness, consistency and persistence / stickiness of energy (and money) savings. Outdoor Temp and Hum Sensor Utility Electric Meter Home Energy Manager Warm Air Furnace Appliances A/C unit Water Heater PHEV Solar Geothermal Pool pump

Innovative Marketing to Engage Your Customers Smart Grid Vision Home Business Design Program Management Marketing Technology Call Center Field Delivery Evaluation ZigBee Native AMI Radio IP Addressable Dynamic Pricing Automation Behavioral Change Net Metering Demand Response Energy Efficiency UtilityPRO DR Thermostat Integrated Software Solutions UtilityPRO with Integrated IHD In Home Display Building Controls Smart Appliances In Business Display Innovative Marketing to Engage Your Customers

Challenges in Realizing the Smart Grid Vision Policy Considerations All clean energy forms should receive equal treatment Energy efficiency, demand response, renewables Encourage deployment of easy-to-use automation for consumers to realize SG benefits Leverage existing infrastructure AMR meters Cellular/WiFi/Broadband networks Technical Challenges Establishing standards for interoperability quickly Backward compatibility Establish clear demarcation point between utility & customer premises System architecture should allow evolution of the smart grid Introduction of new functionalities should not result in changing out metering infrastructure Future proofing technologies 2.4Ghz ZigBee networks: Penetration through walls/floors Need for high density mesh repeaters Universal interface protocol such as IP Ability to upgrade functionality of installed devices and networks Sufficient bandwidth for yet undiscovered new functionality

Thank you! Kevin Lauckner, Kevin.Lauckner@Honeywell.com