The smart grid is a highly complex system that is being formed from the traditional power grid, adding new and sophisticated communication and control devices. This will enable integrating new elements for distributed power generation and also achieving an increasingly automated operation so for actions of the utilities as for customers. In order to model such systems, a bottom-up method is followed, using only a few basic elements which are structured into two layers: a physical layer for the electrical power transmission and one logical layer for element communication. A simple case study is presented to analyze the possibilities of simulation. It shows a microgrid model with dynamic load management and an integrated approach that can process both electrical and communication flows. (C) 2013 Elsevier Ltd. All rights reserved.