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Despite the significant effort spent the efficient and reliable delivery of energy to individual households remains an unsolved challenge. One of the key roadblocks is the high complexity of the smart grid system. In this paper we propose a new architecture for the management of the energy flow between smart grid and households. The proposed design strives to dynamically balance and optimize the amount of energy between the grid and the various smart homes. The preliminary experimental results show that the proposed design can capture the major characteristics of a smart home system, and when combined with higher level optimization tools has the potential to provide significant energy saving.