The paper outlines energy management concepts and the smart grid evolution. The necessity of considering energy management as a crucial innovation in load supplying to permit a more powerful penetration of renewable energy usage at the building and city level and to perform energy savings and CO2 emissions reduction is pointed out. The driving factors to enhance the current power distribution are presented, and the benefits concerning smart grids are underlined. In the paper, a specific energy management analysis is reported by considering all the electric value chain, and the demand-side management and distributed on site control actions are described. To verify the benefit of energy management control actions, a house simulator and a grid simulator are here presented and the results discussed in three different scenarios. Moreover, in the paper, the evaluation of ecological benefits are reported, and a cost benefit analysis of the energy management system is performed. Results pointed out that with the standard control actions, the system is not economic for the end user, and only by using energy management systems with renewable energy, in site production remunerative energy savings can be reached. Finally the evolution of smart grids is presented, focusing on potential benefits and technical problems. The active grids, microgrids and virtual utility are described, and final consideration on hypothetical scenarios is presented in the conclusion.