System engineering and smart grid technology faces several challenges in the context of systems engineering. First, smart grid development technology requires regular analysis and testing of its performance in the transition from Supervisory Control and Data Acquisition (SCADA) and the critical infrastructures it controls and monitors. Secondly, smart grid technology is based on several premises including the efficiency of renewable energy versus traditional energy sources. Thirdly, smart grids functions include the potential to provide accurate real-time prediction of the output energy for dynamic adjustments of the output based on the load demand from consumers. However, none of these address the greater challenge facing recent developments for the smart grid initiativesnamely, intelligence and smart grid performance. The integration of smart grid with cyber infrastructures is intended to provide cost-effective deployment and additional features in the functions. This systems engineering technology however, does not adequately address the intelligent, system design, data mining and accuracy of feedback input from load demands and cyber-related issues of smart grids. This is significant for Critical Infrastructure Protection (CIP), Critical Energy Infrastructure Information Protection (CII) and Critical Energy Infrastructure Information Protection (CEII) and Data Privacy for Transmission of Sensitive Data.