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This paper brings the application of non-intrusive load monitoring (NILM) into demand response (DR). NILM is usually applied to identify the major loads in buildings, which is very promising in meeting the load monitoring requirements of demand response. Unlike the traditional approach of NILM in energy auditing, a new NILM system for DR is established based on a comprehensive analysis on the requirement of demand response. The new system is designed from both hardware and software aspects with a more practical load space and a more explicit measuring criteria. The ultimate goal of this paper is to pave the road for the future researchers to work in NILM for demand response.