Smart grid systems and communication technologies, such as Advanced Metering Infrastructure (AMI), have revolutionized utility service management and monitoring. AMI leverages smart meters equipped with advanced communication capabilities, facilitating bidirectional communication between utilities and consumers. The increasing deployment of smart meters and the adoption of sub-hourly data collection requirements by utility companies highlight significant data volume growth. Thus, there is a need for efficient real-time data processing solutions as existing approaches may not meet previously established Service-Level Agreements (SLAs) concerning performance, accuracy, and scalability metrics. This research aims to comprehensively review the latest publications relevant to distributed real-time data processing methods for smart grid applications and outline problems for further research. Specifically, the study delves into the effectiveness and application of reviewed approaches in managing the constant stream of data from smart meters and IoT devices within the smart grid context. By analysing existing methodologies and advancements, this study seeks to identify challenges and opportunities in real-time data processing for smart grid infrastructures, focusing on addressing the complexities of processing, managing, and storing large volumes of real-time data. The literature review revealed two primary applications of real-time data processing: optimization of data streaming performance and data analysis. The review encompasses various studies, each presenting distinct methodologies and technologies applied to address the challenges of processing large volumes of real- time data from smart meters and IoT devices. Future research should address the challenges and limitations discovered in this study.