The ongoing digital transformation in power grids has made the Internet of Things (IoT) a critical component for the development of next generation smart grids. The article provides a detailed review on technologies related to IoT and their utilization within the current power grid ecosystem that includes various IoT layers like perception layer sensors, advanced metering infrastructure (AMI), and cloud computing/ artificial intelligence(AI) based energy management platforms. The paper discusses the layered IoT architecture for smart grids, explores various wireless communications solutions including ZigBee, LoRaWAN, NB-IoT and 5G. The article also examines enabling IoT technologies including big data analysis, blockchain-based secure transactions for energy trading and federated learning for privacy preservation. Emerging IoT paradigms like blockchain-enabled DL networks, lattice-based cryptography schemes for IoT devices and software-defined vehicular edge computing solutions are analyzed as critical components of next generation secure smart grid infrastructures. Application of IoT in demand response, fault detection, renewable sources integration, and distributed energy resource management is explored systematically. Issues associated with interoperability, scalability, cyberattacks, and real-time latency are also addressed with proposed mitigation approaches. Finally, the paper concludes with future research directions related to integrating AI and IoT technologies in the smart grid ecosystem.
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