Because of the shortage of domestic energy resources in Taiwan, more than 97% of the energy has to be imported. The energy price has been increased dramatically during recent years due to the limited supply of conventional primary fossil energy resources. With the economic development and upgrade of people living standard, the electricity power consumption is increased significantly. To solve the problem, different strategies of energy conservation and CO2 emission reduction have been promoted by government to reduce that the peak loading growth and achieve better usage of electricity with more effective load management. This thesis proposes a digital smart meter which integrates the energy metering IC, microprocessor and hybrid communication schemes (Power Line Carrier/ZigBee/RS-485). The load control module and communication module are included in the smart meter to support various application functions. The embedded power management system (PMS) is also proposed to integrate with the smart meter to perform the demand response according to the real-time pricing and load management for residential and commercial customers. The master station can supervise the real-time power consumption of various load components to analyze the power consumption model of customers served and execute the demand load control. The actual demonstration system of embedded PMS has been set up to verify the function of energy management so that the customers have better understanding of power consumption by each appliance. In the future, the implementation of intelligent load control with an emergency load shedding of capability can help utility companies to achieve virtual power generation to enhance the power systems reliability. The customers may also reduce the electricity charge by executing demand response function, which disconnects the electricity service for non essential loads for either system emergency or high electricity peak pricing