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The rapid increase in the demand for electricity necessitates the power quality improvement for achieving better reliability in smart grids. Wireless Sensor Networks (WSN) is the proven technology for reliable monitoring. This paper proposes a system model for the development and implementation of WSN based communication system for the monitoring of distributed generation, loads and transmission lines in the electrical grid and a controller system for automated control on the electrical grid. This work also aims to reduce the carbon footprints by reducing the dependency of electrical grid through the enhancement of distributed generation and grid sharing for avoiding voltage rise problem. To achieve this, a smarter electrical grid has been developed for the validation of smart grid considering a generation substation, a transmission substation and a distributed generation with loads. The occurrence of power quality issue and voltage rise has been controlled by active power control strategy. The communication network and controller has been modeled and tested for the performance of monitoring system and data communication capability on smart grid.

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