This article investigates and analyzes the security aspects of 5G specifications from the perspective of IoT‐based smart grids. As the smart grid requires high‐speed and reliable communication to enable real‐time grid monitoring via Internet of Things (IoT) devices, 5G can be considered a catalyst to transform the current power grid infrastructure into a smart grid. Thus, an understanding of what 5G can bring in terms of cyber security in IoT‐based smart grids is important for design decisions and future risk analysis efforts. In this article, we explore a smart grid use case on automatic voltage control—a use case utilizing 5G as a wireless communication infrastructure with edge support. We identify the benefits 5G brings to several security aspects, and show how 5G security techniques are applicable to the smart grid, thus providing a foundation for future security analysis of 5G enabled smart grid systems. Future research should extend this work to additional smart grid use cases.