This paper presents EMBASS, an Enhanced Multi‐Authority Attribute‐Based Encryption System for Smart Grids. EMBASS supports outsourced decryption to devices with limited resources. It also uses a proxy to add fake values to the access policy in order to protect against malicious users. Additionally, a proxy user assistant is utilized to create an intermediate key for each fog node in the decryption process, and a chain decryption technique is used to further delegate the decryption process. The security properties and performance of the proposed system are analyzed, discussed and compared to state of the art approaches. EMBASS has been discussed for usage with smart grids, and experimentation shows that it yields promising results compared to state‐of‐the‐art approaches.