Smart grid is a modified form of electrical grid where generation, transmission, distribution and customers are not only connected electrically but also through strong communication network with each other as well as with market, operation and service provider. For achieving good communication link among them, it is very necessary to find suitable protocol. In this paper, we discuss different hardware techniques for power monitoring, power management and remote power controlling at home and transmission side and also discuss the suitability of Zigbee for required communication link. Zigbee has major role in monitoring and direct load controlling for efficient power utilization. It covers enough area needed for communication and it works on low data rate of 20Kbps to 250Kbps with minimum power consumption. This paper describes the user friendly control home appliances, power on/off through the internet, PDA using Graphical User Interface (GUI) and through GSM cellular mobile phone.
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