In this presentation, the smart grid project 'PowerMatching City' is introduced. PowerMatching City is a living lab demonstration of the future energy system. In PowerMatching City the connected households are equipped with a mix of decentralized energy sources, hybrid heat pumps, smart appliances, smart meters and an energy monitor. Wind energy is supplied via a wind park. In end user research, the experiences of the participating households, and the effects of two demand side management strategies are tested.