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The Internet Protocol version 6 (IPv6) is expected to be one strong enabler for the smart grid. This article sets a focus on the secure transmission of IPv6 using Power Line Communication (PLC). The goal is to have a seamless, yet secure communication from the back office down to the field-level of the grid. This article analyzes how the Internet Protocol security (IPsec) can fulfill utility security scenarios. It shows the mapping of traditional IP networks to topologies of utility networks. Furthermore, a novel approach is introduced allowing to efficiently use standardized security on the resource limited power line channel.