A fundamental requirement for smart grid is the design of a reliable and high performance communication infrastructure. The lack of timely access to information within domains of the smart grid serves as a real limit to detect and effectively react to system instability. Therefore, the delays are an important aspect and should be considered into any power system design or analysis. In this paper, we propose an IP/MPLS based communication infrastructure and optical fiber for the communication medium in the backbone network. In addition, in order to achieve the quality of service required for smart grid applications, traffic flows are classification into four classes using prioritize traffic and appropriate assignment of code point. Then, by using the Traffic Engineering with Diffserv (DS-TE) and active queue management algorithms as well as RIO, the quality of service is guaranteed in an acceptable level.

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