July 2009 Honeywell Smart Grid Perspective Kevin Lauckner

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

à Honeywell. com Honeywell Portfolio Aerospace World’s premier supplier of products for airlines, military aircraft, and spacecraft. Automation & Control Solutions Specialty Materials Transportation & Power Systems 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 2 Services Provided to Over 10 Million Utility Customers Document control number Honeywell Proprietary

à Honeywell. com Honeywell Energy Technologies Public Utilities Industrial Utilities Carbon Capture & Sequestration Advanced Energy Solutions Steam, power Renewable Energy Grid Smart-grid solutions (Demand -Response, Energy Efficiency) Gen 3 Solar Bio-Diesel BCHP @ Ft. Bragg Local Poly-generation (CHP) Versatile Energy Resource Allocation (VERA) 3 Document control number Industrial Process Plants Energy & Carbon Dashboard CHP: Multi-objective Optimization One Wireless Sensor Networks Homes & Buildings Energy Perf. Contracts Building Optimization Electricity, heating, cooling Renewable Integration Multi-site Business Solns. Insulating Foam Honeywell Proprietary

à Honeywell. com 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 4 Document control number Honeywell Proprietary

à Honeywell. com 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 5 Document control number Honeywell Proprietary

à Honeywell. com 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 PHEV Water Heater Appliances A/C unit Solar Geothermal 6 Document control number Pool pump Honeywell Proprietary

à Honeywell. com Smart Grid Vision Home Business Design ng e m at io n Integrated Software Solutions Evaluation ha Energy Efficiency Utility. PRO DR Thermostat Field Delivery C to al Demand Response Call Center or Net Metering vi Dynamic Pricing Technology ha Au Marketing Be Zig. Bee Native AMI Radio IP Addressable Program Management Utility. PRO with Integrated IHD In Home Display Building Controls Smart Appliances In Business Display Innovative Marketing to Engage Your Customers 7 Document control number Honeywell Proprietary

à Honeywell. com Challenges in Realizing the Smart Grid Vision • Policy Considerations • Technical Challenges – All clean energy forms should receive equal treatment – Establishing standards for interoperability quickly • Energy efficiency, demand response, renewables • Backward compatibility – Encourage deployment of easy-to -use automation for consumers to realize SG benefits – Leverage existing infrastructure • AMR meters • Cellular/Wi. Fi/Broadband networks – 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. 4 Ghz Zig. Bee 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 8 Document control number Honeywell Proprietary

à Honeywell. com Thank you! • Kevin Lauckner, Kevin. Lauckner@Honeywell. com 9 Document control number Honeywell Proprietary