A method and apparatus for managing power of a smart appliance is provided. The method includes acquiring, from the smart appliance, by an Energy Management System (EMS) for managing power of the smart appliance at home over a home network, terminal information including function information and power consumption information; monitoring power of the smart appliance and transmitting results of the results to an energy service provider; and controlling, upon receiving a power reduction command from the energy service provider, the power of the smart appliance based on the acquired terminal information.