Power line communication (PLC) is increasingly developing into one of the extremely attractive technology for communication by exploiting the existing electrical network. The thesis provide a comprehensive overview of applications and PLC technologies focusing on the characteristics and challenges for medium voltage (MV) network which is the smart grids backbone, for low voltage (LV) network which is utilized for distribution and household connectivity and for indoor voltage (IV) network which can be used for in-home automation system etc. A key contribution of this thesis is the simulation based analysis of various channel capacity, considering the behavior of different network topologies including MV, LV and IV network. Using the transmission line theory and equations for network modeling, we simulate, analyze and evaluate the channel transfer function and capacity under different loads, branch lengths, number of branches in the presence of noise, considering its effect on the signal using Shannon’s theorem. The result of which shows, how factors like number of branches, load impedance and branch length affect the channel capacity.  In addition to that, this work discusses a bit on the evolution of PLC standards referencing CENELEC and ETSI. Furthermore, the importance of security for PLC technology is also mentioned. The thesis concludes, the significance to model a suitable channel considering all the mentioned factors to achieve optimal channel capacity.