According to the International Journal of Sustainable Built Environment buildings consume 20–40% of the world’s energy utilization, making them ought to explore their energy execution a need. These buildings include many types of electric appliances which constitute the main electric loads.

Recently, the world witnessed the evolution and a huge development in smart appliances and internet technologies, these smart appliances provided an efficient performance with several advantages over the non-smart appliances such as convenience at different levels, better security and less cost. One of the main important features of a smart appliance or device is its ability to be connected to the internet, which is a useful feature that allows the use of IoT technology with all the advantages, quality and efficiency it provides. However,  with the increased number of these smart devices due to the huge demand for it, power consumption can be considered as an important issue that directly affects the economic situation were billion of these smart devices already exist as demonstrated in the figure below.

With the evolution of smart electrical devices and IoT technology, the main challenge is how to use these technologies to reduce power consumption. Therefore, reducing the power consumption from the demand side, demand-side management (DSM) or demand response (DR) can be achieved using these smart devices and smart meters.  These smart devices can operate in several modes while communicating and negotiating their power usage with other smart devices in a specific network protocol. An electricity smart meter is an electronic appliance that records the overall consumption of the property and sends reports upstream to the utility grit control center including energy consumption and other parameters. However, during peak demand hours, because of the large power flow in the network from the generations to the demand locations, an excessive amount of power losses and voltage drop, and power rating violations may take place in some heavily loaded parts of the grid. Therefore, increase the generation during peak demand may not be the most efficient solution to satisfy the demand. Besides, increase bulk power generation for just a few hours is not cost-effective. Other more efficient solutions include distributed generation (DG) and DSM.