Abstract Smart grids are designed to revolutionize the energy sector by creating a smarter, more efficient and reliable power supply network. The rise of smart grids is a response to the need for a more comprehensive and sophisticated energy system that caters to the needs of homes and businesses. Key features of smart grids include the integration of renewable energy sources, decentralized generation and advanced distribution networks. At the heart of smart grids is a sophisticated metering system, consisting of intelligent electronic devices that measure energy consumption and enable two-way communication between the utility company and the consumer. The information exchanged via these devices is critical, as it includes sensitive data such as energy consumption patterns and billing information. With the rise of the Internet of Things (IoT) and Industry 4.0, the security of this information is of utmost importance. This paper delves into the security challenges faced by advanced metering infrastructure (AMI) and highlights the crucial role played by cryptography in ensuring the secure exchange of sensitive information. Cryptographic protocols such as encryption, authentication and digital signatures are essential components of a secure smart grid infrastructure. These protocols work together to ensure the confidentiality, integrity and authenticity of the information exchanged between the utility company and the consumer.