The traditional power grid system is a centralized and unidirectional system where the power flows from the power generation and distribution station and to the consumer. The smart grid aims to improve certain parameters of the classical power grid by providing more reliable and efficient use of electricity, a two-way flow of information between users and the utility station, improved energy storage and to incorporate renewable sources of energy, while being scalable and self-healable. In this paper, we analyze the performance of a smart grid in which the communication layer is implemented using Worldwide Interoperability for Microwave Access (WiMAX) communication technology. Parameters such as throughput, network capacity, packet loss, latency are studied by analyzing the traffic model generated by using several applications in the Distribution Area Network (DAN) of the smart grid. The applications whose traffic was simulated using OPNET are the following four: metering and pricing, electrical car, video surveillance and voice support for workforce. The capacity of a base station in the distribution area network is obtained for each smart grid application individually as well as for the combined traffic of all applications.