In this paper, to improve the quality of service in terms of embedding capacity and resource utilization of the database has done using data compression and lightweight encryption technique for the smart grid. In the proposed technique, the run-length encoding technique used for data compression and ANU lightweight algorithm has been used for data encryption. The algorithm has designed and simulated in MATLAB 2013a. The experimental results show that the proposed technique has taken fewer resources and consume less file size as compared to conventional AES techniques.