Cognitive Radio (CR) has been recognized as one of the intellectual solutions for Smart Grid environment to transmit high volume data over various environments and distribute the electricity to the customers. The inspiration of this work is to reduce the interference and allocate channels efficiently that improves the and utilization fairness of the Smart Grid (SG) network through a clustering-based EnergyEfficient Power Allocation algorithm among Secondary Users. Mathematical equations have been developed for the performance parameters such as channel reward, user reward, Jain’s fairness index, throughput and power calculation which has been simulated using MATLAB R2020b.