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Smart grid is a term referring to the next generation power grid in which the electricity distribution and management is upgraded by incorporating advanced twoway digital technology and communication capabilities for improved control, efficiency, reliability, and safety. A communication infrastructure is an essential part in the success of the emerging smart grid. A scalable and pervasive communication infrastructure is crucial in both construction and operation of a smart grid. To ensure the correct functioning of a smart grid, it is essential that communications are secured, devices are protected from physical attack, and privacy is respected. Communications require authentication and confidentiality, devices require protection from physical attacks, and the system as a whole must be robust. Authorization will be vital to support secure remote configuration and multihoming scenarios. The privacy of smart grid customers must be protected.