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Smart grid integrates the latest advances in information and communication technologies to contribute to a more reliable and efficient electricity system. By realizing the two-way communication between the utility and the smart meters in the houses, smart grid enables a time-of-use tariff to reduce peak load through incenting residents to adopt a more efficient usage of domestic appliances. In this paper, the candidate communication techniques and the classification of appliances are discussed. Then we proposed a WSN-Based Residential Energy Management Scheme which wirelessly connects non-urgent appliances to the smart meter through the wireless sensor networks. The structure components and the algorithm shows that the scheme can response to the resident's command with the economically suggestion, and help them shift their non-urgent appliances to the off-peak hours. Therefore, the high peak load is alleviated, the green-house gas emission is reduced, furthermore, through the two-way communication, the utility is able to decide the optimal generation plan to satisfy resident demands, and the total utility cost can be reduced.