Echelon says its LonWorks 2.0 platform brings a new level of performance and simplified installation to open building control networks and is fully compatible with the millions of intelligent LonWorks devices already deployed worldwide.

"Our anticipation is an acceleration of energy-aware devices," says Echelon's Steve Nguyen. "What it boils down to is, how efficient can you get, with a reasonable return for the end user's investment. This new platform makes the transition to energy management a lot simpler, easier, and economically palatable."

"What it boils down to is, how efficient can you get, with a reasonable return for the end user's investment."
--Steve Nguyen, Echelon.

Energy-aware networks and products manage their energy usage in response to changing grid conditions, to improve energy efficiency in buildings and interact with a smart grid to reduce peak demand on power generation and transmission.

The initial beneficiary of this concept is the commercial building sector, which consumes about half of the United States' total generated electricity. Within the large building market, the Obama administration's call for improved efficiency is expected to accelerate the demand for greater levels of control and accountability for energy incentive programs.

The greatest impact of LonWorks 2.0 is likely to be on systems for the smaller buildings that comprise the majority of the commercial building market. Most of them lack sophisticated control systems or demand response capabilities, making small buildings ripe for energy efficiency retrofits.

Echelon anticipates that the first LonWorks 2.0 products will be commercially available in August 2009.

The first products include the Neuron 5000 processor, which is a LonWorks-optimized microprocessor with an industry-standard control networking protocol built into the chip to simplify development and improve interoperability. Neuron processors are at the core of many LonWorks systems. The new processor is up to eight times faster than previous designs and consumes less power.

The new components will be compatible with the installed base of over 80 million LonWorks devices already in use for automation and energy management. LonWorks is used in the Beijing Olympic Village, the New York City subway system and Public School District, and the Helsinki Rail System.

Echelon also expects LonWorks 2.0 to displace older technologies, both standard and proprietary.

"With the increased performance and reduced cost of the LonWorks 2.0 platform, we have expanded the opportunity for even more devices to become smart and energy-aware at a time when the world needs it most," said Ken Oshman, CEO at Echelon. "Saving energy has never been more important than now, both with respect to the climate impact and the economic impact -- and we are proud to able to play a leading role in making this happen."

Echelon Corporation (NASDAQ: ELON)