On Monday, Honeywell announced the formation of Smart Grid Solutions, a global enterprise that centralizes the company's existing smart grid resources to respond to the growing needs of both energy providers and users. Part of Honeywell's Building Solutions business unit, Smart Grid Solutions will deliver end-to-end programs that connect utilities and their customers to solve a variety of energy challenges, such as relieving stress and congestion on aging electrical infrastructure, leveraging intermittent renewable resources, and better managing the increased demand for energy, which is expected to grow 40% by 2035.
According to Honeywell (Morristown, N.J., USA), the creation of Smart Grid Solutions is a strategic reflection of the anticipated rise in worldwide energy consumption and the corresponding need for demand-side-management services. According to a recent report from Pike Research (Boulder, Colo., USA), revenue for demand response services in particular will grow from nearly $1.3 billion last year to $6.1 billion by 2016, with load-curtailment services representing nearly two-thirds of the total opportunity.
“The scope and applicability of our work is expanding. Countries across the world are making significant investments to build a smarter, more robust grid. And we have the technology, services and relationships to help those investments pay dividends," said Jeremy Eaton, vice president and general manager of Honeywell Smart Grid Solutions.
China , for example, is expected to spend RMB$1.5 trillion on its energy infrastructure during the 12th Five-Year Guideline period ending in 2015, with the long-term goal of having a dynamic smart grid throughout the country by 2020.
Honeywell is currently working with the Tianjin Economic-Technological Development Area (TEDA) to implement China's first smart grid demand response project. As part of the project, Honeywell is installing its automated demand response (Auto DR) technology at select buildings within Tianjin, including government, commercial and industrial facilities. This will allow TEDA and network operator State Grid Corp. of China to automatically adjust energy use to reduce demand on the electrical grid, helping avoid potential brownouts and blackouts. Similar projects are underway in Australia, India, United Kingdom and United States, says Honeywell.
Honeywell has also assisted utilities in gaining combined control of more than 1 gigawatt of peak electrical use through its residential demand response efforts -- equivalent to the generation capacity of approximately 20 gas-fired peaking plants. Honeywell UtilityPRO, -a thermostat for utility-sponsored demand response programs, having been selected by more than 20 power providers and installed in nearly 620,000 homes since 2008. The company recently added to its utility-focused residential portfolio by announcing plans for a cloud-connected thermostat with energy-analytics-expert Opower that will help utilities boost their energy efficiency programs and drive deeper saving in the home.
"The grid won't be smart until it allows utilities and users to work together to reduce consumption and boost stability," said Paul Orzeske, president of Honeywell Building Solutions.