The distribution segment of the power system is of great importance in the smart grid (SG). The deployment of Information and Communication Technologies (ICTs) to support conventional grid will solve legacy problems that used to prevent implementation of smart services such as smart metering, Demand Side Management (DSM) or the integration of Distributed Energy Resources (DERs) within the SG. In this contribution, GRACO, a new geographic routing algorithm is proposed to support exploitation of SG full potential. We demonstrate, through simulations, the effectiveness of GRACO in terms of scalability, peer-to-peer routing, end-to-end delay and delivery rate.