In recent years, due to the issues of energy saving, the smart grid has become more important. AMI (Advanced Metering Infrastructure) is the basic of smart grid. However, AMI¡¦s network initialization usually cost a lot of time delay and energy waste because of many collisions due to the initialization in the high node density and variable network. In this paper, we proposed a Dynamic Contention Slot Initialization Protocol (DCSI Protocol) to reduce time delay and energy waste in the network initialization. At the beginning, all nodes in DCSI protocol are set in the receiving state. The proposed approach reduces not only collisions but also the communication failure due to the interference out of the transmission range. We divided time into time slots and then composed them to superframe. The first slot of superframe is designed for master node¡¦s broadcast, and other time slots are devised for other nodes to join in the network. Based on the previous superframe, nodes for the proposed protocol adjust the number of the contention slot by detecting collisions to adapt the high node density and variable network. The simulation results demonstrate superiority of DCSI protocol over flooding.