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The paper describes the objectives and design of a demand-side management system for a smart grid lighthouse project in Breda, the Netherlands. In order to stimulate the consumer to save energy and shift the use of appliances in time, incentives have been designed. Based upon these incentives, an in-house energy management system can schedule smart appliances in optimal time-slots by means of specifically designed algorithms. The stimulation of behavioural change and the offered incentives are expected to result in significant financial savings for the consumers.