The legacy power grid has been serving our electricity needs for decades. However, the increasing human population, the inefficient utilization and integration of renewable energy sources, the one-way communication scheme in addition to the high management cost resulted in an inefficient power generation, distribution and management [1]. This requires the development of a Bsmart^ power generation and distribution to replace the conventional power grid. Consequently, the features of the smart grid (SG) are envisioned to offer abundant advantages over the legacy grid in terms of scalability, reliability, flexibility, resiliency, sustainability and intelligence [2]. However, such features are predicated on the presence of a sophisticated and welldesigned communication paradigm that will play a vital role in the power system management. Internet of Things (IoT) is an emerging concept that represents the expansion of the internet and networking to cover unforeseen fields such as transportation, health services, manufacturing factories and power grids [3, 4]. In this technology, the physical objects are connected to enable them to monitor, collect, interpret and exchange the information of each other. SG is composed of millions of interconnected devices and the majority of the SG applications and services depend on the existence of a sophisticated communication scheme that enables such devices to efficiently communicate with each other. Therefore, applying IoT to the power grid can empower the implementation of the SG due to the similar characteristics between IoT and SG. SG is an intelligent replacement to the obsolete power grid, where robust control, better power quality with economic efficiencies is realized. It is considered the future power grid as it can respond to current and future customers need for electricity. The improvements SG offers over the legacy power grid are due to the integrating of digital computation and communication technologies that can provide consistent and efficient delivery of electricity and exchange of information between utility companies and consumers [5]. The most important characteristics of the smart grid are: 1. Information communication. Two-way communication is the main feature that characterizes the smart grid operation. 2. Controllable prices grow-up. SG customers will have better control over which appliances should be turnedoff; in addition they will be able to contribute in power production. 3. Better Energy management. Integrating communication allows schemes such as Demand-Response (DR) [6], load profiling [7] and peak shaving [8] to gain better control over the power grid which will reduce power outages and blackouts. 4. Permit optimal integration of distributed resources. SG permits the deployment of distributed resources like renewable energy sources [9]. 5. Resist attacks. In opposite to the conventional power grid, SG is supposed to withstand a variety of cyber and physical attacks [10]. 6. Self-healing. SG has the capability to detect and respond to certain failures without human intervention. This is done through digital components and intelligent realtime communications technologies [11]. It can segregate outages by redirecting the electricity to meet customers demand.