Emerging Software Defined Networking (SDN) technology has provided excellent flexibility to large-scale networks in terms of control, management, security, and maintenance. On the other hand, recent years witnessed a tremendous growth of the critical infrastructure networks, namely the Smart-Grid, in terms of its underlying communication infrastructure. Such large local networks requires significant effort in terms of network management and security. We explore the potential utilization of the SDN technology over the Smart Grid communication architecture. Specifically, we introduce three novel SDN deployment scenarios in local networks of Smart Grid. Moreover, we also investigate the pertinent security aspects with each deployment scenario along with possible solutions. On the other hand, we conducted experiments by using actual Smart Grid communication data to assess the recovery performance of the proposed SDN-based system. The results show that SDN is a viable technology for the Smart Grid communications with almost negligible delays in switching to backup wireless links.