Sustainable development is major requirement of current scenario due to global warming and shortage of energy in all over the world. Smart Grid is emerging concept to improve reliability and efficiency of the power systems through intelligent electricity grids which further make it more responsive to frequently changing energy needs of the consumers. Integration of existing energy resources with smart grid technologies are the major enablers for smart grid network and energy sustainability. Due to rapid growth in population, employment of proper communication system for implementation of Smart Grid applications is challenging task in current situation. Therefore, this paper explores different communication challenges in context of Smart Grid i.e. Low data rate and short range, cyber-security threats, high power consumption, lack of common, secure standards and communication protocols, high investment requirements, big data challenges, cloud computing challenges, Interference between networks, IOT challenges and lack of infrastructure have been identified using compressive literature search and with the help of experts’ opinions. The barriers are prioritized and structured using ISM (Interpretive Structural Modeling) to establish the relationship between these challenges. So that these barriers can be mitigated by taking counter steps according to developed model of prioritization.