In this paper, we study on the reliability of Very High-rate Power Line Communication (VH-PLC) for Smart Grid, so that the resultant data rate is over 400Mbps at a physical layer. Firstly, reviewing the research trend of the PLC, we discuss the required techniques for supporting the Smart Grid. Considering a pre-specification with the value of several parameters, we investigate a multi-carrier modulation technique to overcome limitations of higher rate transmission under power line channel environments. Then, we propose a system specification of the VH-PLC in the sense of enhancing two features. One is resolving the problem of the co-existence of the deployed high-speed PLC according to the published standardization of KS X 4600-1 in Korea. The other is getting better performance on the grid adopting the diverse element techniques, such as multi-carrier modulation, a subcarrier utilization mode, a variable rate LDPC (Low Density Parity Check) code, and a time and frequency diversity technique. Further, a simulation tool, composed of an Event-Driven simulator and a Time-Driven simulator, is developed for the purpose of verifying the system performance and continuously cross-checking the test bench signal of the proposed VH-PLC system.