In summary, smart appliances including the smart meter have raised the interest of the decision- making feature which gives these devices the ability to operate efficiently in terms of reducing energy consumption. The main aim of this project is to build a system that reduces electrical energy consumption by enabling energy negotiation among the smart appliances inside the same building. The proposed method to approach the final solution was to analyze the smart appliances including the smart meter to create a negotiation system among all the smart appliances in the same building. However, to design the appropriate negotiation algorithms, many approaches were analyzed in terms of designing a system that can provide both flexibility and ability to communicate with the utility smart meter. Moreover, the selection of the microcontroller and communication method was critical in terms of designing an efficient negotiation system among the connected appliances. In this project, direct Wi-Fi was selected over Bluetooth due to coverage and delay issues. Mesh topology was adopted to increase the connectivity range and the reliability of the system according to the design constraints. On the other hand, the ESP32 microcontroller was selected over Raspberry-Pi because of the significant difference in the cost as well as the features of ESP32 that satisfy the design constraints. The implementation, testing, and validation were done using four ESP32 devices simulating the smart appliances, and another ESP32 device acting as a coordinator. The conducted tests aimed to check the connectivity of the smart appliances, the ability to send and receive messages among the connected appliances using mesh topology. The tests were conducted successfully, and obtained results validated the proposed system compliance with the design constraints.