KNIVES (Keio University Network oriented Intelligent and Versatile Energy saving System) is an IT based system, designed for Japanese power grids, that supports efficient control and balanced power supply. As KNIVES focuses on the integration of a vast numbers of end-users, it provides the necessary scalability, reliability, and dynamic adaptability. The latest generation of KNIVES system (V2) provides a new hardware concept for a local control that reflects environmental affinity. KNIVES terminals use Internet communication and supports ZigBee based environment sensors. The implementations of this system and practical field tests are described in this paper.