January 30, 2014
Honeywell (NYSE: HON) and power management company Stor Generation Ltd. have launched a new, first-of-its-kind smart grid program in the U.K. The companies will use Honeywell technology to temporarily trim energy use in commercial and industrial facilities, combining the excess power to help stabilize the electrical grid, and address country-wide carbon reduction and renewable energy commitments.
Under the program, Stor Generation will pay facility owners to lower consumption when the call for electricity starts to outpace what power plants and renewable resources are able to produce. Honeywell will work with these organizations to identify, implement and automate short-term changes to heating and cooling equipment, lighting and other building systems ' a concept known as automated demand response (ADR).
Stor Generation will use Honeywell's Akuacom software as a service (SaaS) offering to connect with the participating facilities and communicate when it is necessary to reduce energy use. Stor Generation will then aggregate and provide the resulting reserves to National Grid for its Short Term Operating Reserve (STOR) initiative. STOR and similar programs help ensure grid stability to compensate for spikes in consumption, and times when intermittent renewable energy sources such as wind and solar, an increasing part of the generation mix, are unable to supply power.
This will be the debut of ADR technology in National Grid's U.K. and European territories. And Stor Generation is the first energy aggregator in the region to use ADR to reduce grid stress rather than calling on customers to switch over to back-up diesel generators.
"The technology required to avoid a megawatt of consumption costs a fraction of that needed to pump out an additional megawatt," said Jeremy Eaton, vice president of Honeywell Smart Grid Solutions. "From a cost-benefit standpoint, ADR is the most prudent option for reducing energy use and is the most clean, sustainable path to energy reliability."
"Honeywell's solution enables us to offer clients a new source of revenue, with little or no impact on a building's operation or occupants," said Stor Generation chief executive officer Dr. Azad Camyab. "It also provides clients with near real-time visualization of energy consumption and gives them the ability to reduce costs by offering site load flexibility. We're delighted with the partnership and look forward to working with Honeywell to maximize value for our clients."
As Stor Generation signs up companies for the program, Honeywell will conduct site audits to design load-shed strategies for the building, provide testing and training, and connect each facility to the automated system. Building owners will select and approve the specific energy-reduction measures before they are registered with Stor Generation's program.
In addition, the hardware and software installed can help each organization better manage electricity use every day and boost long-term energy efficiency.
Honeywell is a pioneer and leader in ADR technology with 20 programs underway in the United States and around the world, including groundbreaking projects in Australia, China, India and the U.K. In addition, Honeywell has managed demand response and energy efficiency projects for more than 100 utilities. With controls in 150 million homes, 10 million buildings and thousands of industrial sites across the globe, Honeywell has the technology and expertise to empower smart energy producers and users.
Visit honeywellsmartgrid.com or follow HoneywellGrid on Twitter for more information on the company's smart grid technology and services.
Honeywell is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance 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 www.honeywellnow.com
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