Seart grid software integrates various software components in Generation, Transmission, Distribution, Smart Metering and Cloud systems. The smart grid architecture is evolving with new features and to accommodate legacy software elements. Smart grid integrated software is an evolving approach in line with modern Information and Communication technology. In this paper, the authors propose a software requirement framework for the smart grid architecture with a focus on Embedded Systems. A state of art idea is considered, to extract software development practices in automotive domain for smart grid systems. Multi layered software architecture to implement the proposed requirements, is also analyzed. Complete analysis of sub-systems, devices and their operations are done to derive the framework. Master-Slave software architecture model is considered amongst the various Electronic Control Units (ECUs) present in the smart grid environment. All the smart grid software modules and their data exchange attributes are also evaluated. Interface requirements within the smart grid subsystems are dealt in details. © 2017 IEEE.