JCS_V4_N1_RP1 R. Vijayanand D. Devaraj B. Kannapiran K. Kartheeban Journal on Communication Engineering and Systems 2277-5242 4 1 1 7 Smart Grid Security, Secure Data Transmission, Dual Euclidean, Key Management Smart Grid is the integration of Electrical and Communication network in which data and power flows bi-directionally. The activity of a Smart Grid heavily depends on the instant electrical data received through the communication network. The massiveness of devices and direct communication with the end user makes the Smart Grid infrastructure easily prone to attacks. A slight modification in the data by an unauthorized person may destruct the entire grid. Characteristics like vast data generation, complexity, prompt speed and large geographical distribution area limits the existing security algorithms from being used in the communication network of the Smart Grid. In this paper, we propose an efficient security algorithm using Dual Euclidean algorithm along with its key management technique for Smart Grid application. The proposed algorithm uses two keys to encrypt the data which provides NP-hard complexity and the adversary cannot reveal the original data without knowing both the keys. The performance and security of the proposed algorithm are evaluated and compared with AES algorithm. The simulation results demonstrate that proposed algorithm is suitable for Smart Grid applications. November 2014 - January 2015 Copyright © 2015 i-manager publications. All rights reserved. i-manager Publications http://www.imanagerpublications.com/Article.aspx?ArticleId=3289