Managing peak demand efficiently is vital for maintaining uninterrupted supply of electrical power by utility providers. In this work, a pilot system was developed for managing and controlling the demand of major power consuming equipment in buildings from a central server, while relying mostly on existing infrastructure and maintaining consumer comfort. The system was successfully demonstrated on a selected group of buildings using the LonWorks networking platform. At the building level, the system utilized power line and twisted pair communication to control the thermostats of air-conditioning (A/C) units. The higher level communication was executed through extensible markup language (XML) and simple object access protocol (SOAP). The system provided control capabilities based on A/C unit priority, thermostat temperature, building type and geographic location. The development and execution of demand management strategies for selected buildings led to peak load reductions up to 74%, in addition to energy savings up to 25%. Implementing such a system at a national level in Kuwait is estimated to reduce peak demand by 3.44 GW, amounting to capital savings of $4.13 billion. The use of existing infrastructure reduced the cost and installation time of the system. Based on the successful testing of this pilot system, a larger-scale system is being developed. (C) 2013 Elsevier Ltd. All rights reserved.