This paper conveys development, validation and performance analysis of a communication network for facilitating bi-directional communication in a microgrid adhering to smart grid communication standards. The work encompasses proposing a suitable topology for the communication network and communication technology selection from among technologies like IEEE 802.3, 802.11, 802.15.4 for data transfer by performing communication network simulation in Netsim, a network simulation software. The simulation in Netsim delivers the performance of communication network for various technologies through performance indices like throughput, packet delivery ratio, round trip delay, collisions, protocol overhead time, network setup time etc. Netsim simulation of the heterogeneous communication network, selected from analysis of communication network simulation using multiple technologies, enables its performance validation. This work renders better comprehension in realization of Wide Area Measurement System for real time data collection and status update, Wide Area Control Systems for real time control and Advanced Metering Infrastructure for user integration transforming a microgrid to a smart microgrid.