In the paper the concept of elastic model of energy management for smart grid and micro smart grid is presented. For the proposed model a method for reducing peak demand in micro smart grid has been defined. The idea of peak demand reduction in elastic model of energy management is to introduce a balance between demand and supply of current power for the given Micro Smart Grid in the given moment. The results of the simulations studies were presented. They were carried out on real household data available on UCI Machine Learning Repository. The results may have practical application in the smart grid networks, where there is a need for smart appliances energy consumption adjustment. The article presents a proposal to implement the elastic model of energy management as the cloud computing solution. This approach of peak demand reduction might have application particularly in a large smart grid.
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