Aiming at the requirement such as multi-service transport, IP-based services and network convergence for smart power distribution and utilization networks, this paper proposes a solving scheme for packet transfer technology. It introduces the hierarchical distributed architecture for smart power distribution and utilization networks and the key services requirement, analyzes the characteristics of existing communication technologies, discusses the application of packet transfer technology from the aspects such as multi-service transport, quality of service (QoS), survivability technology, operation administration and maintenance (OAM) and synchronous technology, and offers an application model for packet transfer technology. This research provides an application basis of packet transfer technology in smart power distribution and utilization networks.