Smart grid is a modern electric system which uses advanced information and communication technologies to improve efficiency, reliability, and safety in electric power distribution and management. Smart grid communication architecture is typically comprised of three interconnected networks: Wide Area Network (WAN), Neighborhood Area Network (NAN), and Home Area Network (HAN). This paper studies the resource allocation problem for NAN. Specifically, we propose an optimal resource allocation scheme to provide differentiated service, in terms of end-to-end delay, to different classes of traffic in the NAN. The resource allocation problem is formulated into a Linear Programming (LP) problem, which can be solved efficiently. The simulation results demonstrate that the proposed scheme can provide a lower delay to the prioritized class by optimally allocating the resource at each node in the NAN.
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