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The power grid is evolving into the Smart Grid, by incorporating Information and Communication Technologies (ICT) and new functionalities. Some of the Smart Grid functionalities, such as Advanced Metering Infrastructure (AMI) and Demand Response (DR), require information about customers' energy consumption and production. Power Line Communication (PLC), and more specifically G.hnem, is a candidate technology for connecting the customers and utilities. ITU-T G.hnem standard defines a Narrow-Band PLC, which was specially designed for Smart Grid applications. This paper discusses the advantages of G.hnem and illustrates a generic G.hnem network for AMI and DR, which enables bi-directional communication among customers and utilities.