Sheetal swapnil Mahadik ^* Madhuri Gedam ^* Deven Shah ^*

• Shree L. R. Tiwari College of Engineering, Mumbai University, Thane, India

Environmental sustainability is a pressing global concern, with energy conservation and efficient utilization playing a key role in its achievement. Smart grid technology has emerged as a promising solution, facilitating energy efficiency, promoting renewable energy integration, and fostering consumer engagement. But the addition of intelligent sensors to these grids has the potential to greatly increase the level of sustainability initiatives. This paper highlights the role of smart grid sensors in addressing challenges like energy losses, demand-response limitations, and renewable energy integration. It explains how these sensors enable real-time monitoring, fault detection, and optimal load management to improve grid performance and reduce environmental impact. This also study looks at how AI with smart grid sensor can perform real-time data monitoring , optimal energy distribution, and proactive decision support from smart grid sensors might improve environmental sustainability.Smart sensors provide accurate tracking of energy usage trends, enhance load distribution, and advance the sensible application of renewable energy resources. These sensors aid in cutting down on energy waste and carbon emissions by interacting with customers and enabling demand-response systems. This study addresses the critical role of smart sensors in overcoming the shortcomings of conventional grids and guaranteeing a more resilient, efficient, and sustainable energy future through an extensive analysis of the literature. Grid-enabled systems, such as electric water heaters with sensor , can achieve energy savings of up to 29%. The integration of renewable energy sources through sensors enhances system efficiency, reduces reliance on fossil fuels, and optimizes supply and demand. Utilizing Internet of Things (IoT) technology enables precise monitoring of air quality, water consumption, and resource management, significantly improving environmental oversight. This integration can lead to a reduction in greenhouse gas emissions by up to 20% and water usage by 30%.Lastly, the paper discusses how integrating artificial intelligence with smart grid sensors can enhance predictive maintenance, energy management, and cybersecurity, further strengthening the case for their deployment.