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Smart energy management system (SEMS) is a core part of a smart grid system, which can make this system more intelligent. The final goal of SEMS is to lay a groundwork which would allow efficient management of the smart grid by minimizing the operating costs and by reducing the emission level while meeting the load demand. In this paper, a new technique called as the jump and shift method is developed to handle the multi-objective optimization in SEMS. A 14-bus microgrid (MG) and a 112-bus power system are used to verify the multi-objective optimization algorithm based on the jump and shift method. The results show that the proposed technique performs very well, and it can be used to solve the multi-objective optimization in SEMS for smart grids.