Smart grid is a new generation of electrical grid communication with high management of power flow control, self-healing, energy efficiency, and security through the digital communication networks and technologies. To develop a smart grid from the existing power grid, we need to integrate ICT infrastructures with grid and management of grid has to be automated in the smart way, this requires sensing technologies, distributed communication, and pervasive computing frameworks to make the smart grid more efficient and secure. Theft identifying is one of the major issues faced by many service providers and this makes huge loss to the power management and the provider. This paper proposes a secure power management and theft identification in the smart grid. © Springer Nature Singapore Pte Ltd. 2018.