Transcript No Slide Title

Energy and Industry Trends
Dave Molin
VP & General Manager
Honeywell Building Control Systems
Agenda
• The Current and Future Energy Outlook
• Economy and Market Changes
• Business Opportunities
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Rising Energy Prices
Energy Prices | 1980 – 2035 (2008 Dollars Per Million Btu)
Electricity
Global
Issues
Coal
Natural Gas
Crude Oil
SOURCE: U. S. Energy Information Administration
Independent Statistics and Analysis (December/2009)
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U.S. Energy Consumption
Heating 31%
Residential
22%
Industry (gas)
32%
Buildings
(electricity) 40%
Water Heat 12%
Cooling 12%
Lights 11%
Refrigeration 8%
Electronics 7%
Wet Clean 5%
Cooking 5%
Computers 1%
Other 4%
Lights 26%
Transportation (oil)
28%
US DOE Buildings Handbook, 2008
Commercial
18%
Heating 14%
Cooling 13%
Water Heat 7%
Ventilation 6%
Office Equipment 6%
Refrigeration 4%
Computers 3%
Cooking 2%
Other 13%
Building automation can control 66% of energy in
homes and buildings and can monitor 100%
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Current Situation
• Energy – the catalyst that helped tip us into the recession
– It’s in the news everyday
– We have the ability to provide relevant, robust and lasting solutions for
building owners and end users
• If you’ve been around long enough to have experienced past energy
disruptions, you know they didn’t have any real lasting impact
– This time it’s different and commercial building controls today can
address a large enough portion of the energy consumed in commercial
building facilities
• We can mitigate uncertainty and risk by reducing the impact of
energy volatility on our building owner customers
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Demand Response Implementations
Real Time Pricing
Critical Peak Pricing
Eventuality of some sort of cap and trade implementation, etc.
Is this time really different?
• Energy awareness, cost and volatility
• Shift from new construction toward retrofits and renovation
• Non-traditional competitors challenging the space
• Legislative incentives and mandates
• Standards and code development
• Elevated social conscience
• Capturing savings potential is complex and difficult
Creates Opportunity to Increase Building Performance
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Federal Policy and Legislation
Source: US Dept of Energy
Energy Efficiency and Renewable Energy
DOE Supplier Summit January 2010
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State Energy Activity
States ranked for energy efficiency efforts
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Energy Is Our Business
Air Traffic
Modernization
Biofuels
Green Buildings
Reduced Emissions
Fuel Efficiency
Industrial Process Efficiency
Energy Efficiency,
Demand Response & Smart Grid
Energy
Performance Contracts
60% of Honeywell ACS Products & Services
Related to Energy Efficiency & Consumption
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So, what’s a Smart Grid anyway
Economics of Electricity
Payback Period
Benefits Availability
Coal
10-15 Years
2-3 Years
Nuclear
20+ Years
5+ Years
Renewables
Exceeds Useful Life of
Asset
Varies
Energy Efficiency
2-5 Years
Immediate
• Energy Efficiency & Conservation are the Cheapest Sources of Power
• Honeywell Products Leverage Existing Infrastructure in Homes,
Buildings and Industrial Plants to manage peak and base-load
demand
Efficiency and Conservation are the Best Options
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The Smart Grid
• More than Smart Meters
• Control of energy from and
to the end user
• Reduce energy and
reduce the load on an over
extended infrastructure
• Optimize the Energy
Infrastructure
• Smart Production,
Delivery, and Use of
Energy
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Source: 2009 Electric Power Research Institute, Inc.
Automated Demand Response
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Agenda
• The Current and Future Energy Outlook
• Economy and Market Changes
• Business Opportunities
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Non-Residential Growth Forecast
Non-Residential Construction to improve, but stay
below peak levels for some time
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Vertical Market Growth Forecast
• Office Facilities
• Commercial Facilities
• Educational Facilities
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Office Buildings
Source: ITR 2012
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Commercial Properties
Source: ITR 2012
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Educational Facilities
Source: ITR 2012
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Agenda
• The Current and Future Energy Outlook
• Economy and Market Changes
• Business Opportunities
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Facility Management Today
• Increasingly, facilities are viewed as strategic
resources, rather than as an expense
• The facility manager is being elevated to the role of
asset manager, supporting the organization's overall
business goals
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Business Challenges faced by FMs
• Increase efficiency & reduce costs
– Multiple user interfaces & redundant system
applications/workstations
– Requires significant time to train users
– Primary building equipment can be large energy users
– Energy supply and demand cannot be optimized without
measurement, analysis and appropriate response
• Minimize system downtime & disruptions
– Difficult to implement routine maintenance & cleaning
– Too many systems, not enough time/expertise
• Improve decision making
– Hard to get at information when you need it
– Information exists within different systems
– Limited reporting & trending capabilities
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Industry Technology Trends
• Our world is becoming instrumented
– Ability to measure, sense & see exact conditions of everything
• Our world is becoming interconnected
– In 2011 we are 10 X more instrumented & connected
then in 2006
– New ways for people, systems & objects to communicate
– Use of the Internet in our daily lives is increasing
• Cisco predicts 15 Billion devices by 2015 and 3 Billion users (40 percent
of world population)
– It was approx 5 Billion in 2010
• Customer data presentation expectations are changing
– People want to see and use data and information the way they do
everything else in their daily lives
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Summary
• Energy is expensive and prices are volatile – and
there’s no end in sight
• Measuring energy is the first step in improving energy
performance
• Independent forecast creates optimism for construction
and retrofit opportunities, but the migration from new
construction to retrofit is paramount
• Smart BAS Systems can optimize business
performance for building owners
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