This document presents an IoT application framework for industrial facility demand response energy management (FDREM) for the smart grid, enabling efficient information Exchange between industrial facilities using IoT related communication technologies. This document specifies: Overview of price-based demand response program that serves as basic knowledge backbone of the IoT application framework; An IoT-based energy management framework which describes involved functional components, as well as their relationships; Detailed information exchange flows that are indispensable between functional components; Existing IoT protocols that need to be identified for each protocol layer to support this kind of information exchange; Communication requirements that guarantee reliable data exchange services for the application framework.