The reliable, efficient, sustainable and optimal management of city resources to facilitate the inhabitants defines the Smart City (SC). The resources of every sector of a SC are managed for their efficient utilization. The power sector is the backbone of a SC, which should be well planned in its design and structure to optimize power utilization. The integration of Information and Communication Technology (ICT) with conventional power grid allows two-way communication between supply and demand sides, which is defined as Smart Grid (SG). The intelligent monitoring and control systems for SG optimize the power generation and power consumption on supply and demand sides, respectively. On supply-side, fossil fuel is used to run the power generators to fulfill power demand, which is expensive and also emits Carbon-dioxide (CO2) in the environment. High power demand requires more generation as a result more CO2 is released in the environment, which causes the greenhouse effect. Optimized energy demand (power management on demand-side) ensures the optimized power production, which reduces the energy cost and emission of CO2. The demand-side is divided into industrial, commercial and residential sectors. The energy management programs optimize the power demand for these sectors. The industrial and commercial sectors are rigid for their energy demand due to their business portfolio; however, the residential sector is flexible. A energy management program of a home optimizes the energy demand by shifting its load demand of from on-peak to off-time time-slots. This optimization reduces energy cost of the home and power production on supply-side. Moreover, the integration of Renewable Energy Sources (RESs) on demand-side mitigates power demand from the utility (supply-side). The residential sector is further classified into islanded Smart Homes(SHs) and
smart community for energy management. In an islanded SH, the load is shifted from on-peak to off-peak time to reduce power consumption cost while avoiding the peak demand for the supply-side. However, when multiple SHs in a community shift load to avoid peak demand, it may generate a rebound peak and the problem of inefficient power demand persists. So, a global solution is required to be proposed for a smart community by considering power sources and power demand.