Electric grid as we now it has been without significant change for a long time. Along with the human population grows demand for electricity, which leads to need to create more energy. Bigger interest is in ecology and use of renewable sources, although these do not have constant output which often stresses the grid. These problems are to be solved by smart grids. Smart grids are capable of adjusting energy generation to immediate demand including renewable sources to compensate energy fluctuations in grid. They provide demand response and other applications interesting for end users. Smart grids are combination of achievements in energy, informatics and communication technology. Communication, which is key part of smart grids, has to met certain requirements and can be executed by various technologies. There are described various communication technologies and a design concept of data communication in this paper.