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In this paper a smart grid cloud has been simulated using CloudSim. Various parameters like number of virtual machines (VM), VM Image size, VM RAM, VM bandwidth, cloudlet length, and their effect on cost and cloudlet completion time in time-shared and space-shared resource allocation policy have been studied. As the number of cloudlets increased from 68 to 178, greater number of cloudlets completed their execution with high cloudlet completion time in time-shared allocation policy as compared to space-shared allocation policy. Similar trend has been observed when VM bandwidth is increased from 1 Gbps to 10 Gbps and VM RAM is increased from 512 MB to 5120 MB. The cost of processing increased linearly with respect to increase in number of VMs, VM Image size and cloudlet length.