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Smart grid is widely considered to be a next generation power grid, which will be integrated with information feedback communications. However, smart grid communication technologies are subject to inefficient spectrum allocation problems. Cognitive radio networks can solve the problem of spectrum scarcity by opening the under-utilized licensed bands to secondary users. In this paper, adaptive cognitive radio spectrum sensing and sharing algorithms are developed for smart grid environments. Simulation results are presented to demonstrate the effectiveness of the proposed scheme in comparison with other existing schemes.