Smart grids have emerged as a key technology in the quest for energy efficiency and sustainability. This review provides a comprehensive analysis of the impact of smart grids on energy efficiency, highlighting key findings, challenges, and future directions. Smart grids leverage advanced sensing, communication, and control technologies to optimize the generation, distribution, and consumption of electricity. By enabling two-way communication between utilities and consumers, smart grids improve grid reliability, reduce energy losses, and facilitate the integration of renewable energy sources. One of the key findings of this review is the significant impact of smart grids on energy efficiency. Studies have shown that smart grids can reduce energy consumption by enabling real-time monitoring and control of energy usage. This not only helps consumers reduce their electricity bills but also reduces the overall carbon footprint of the electricity sector. However, the deployment of smart grids faces several challenges, including high upfront costs, interoperability issues, and data privacy concerns. Addressing these challenges will be crucial for the widespread adoption of smart grid technologies. Looking ahead, the future of smart grids holds great promise for further improving energy efficiency. Emerging trends such as the Internet of Things (IoT) integration, artificial intelligence (AI) algorithms, and distributed energy resources (DERs) management are expected to drive further innovation in smart grid technologies. In conclusion, smart grids have a transformative impact on energy efficiency, offering significant benefits for consumers, utilities, and the environment. However, addressing challenges such as cost and interoperability will be crucial for realizing the full potential of smart grids. By embracing emerging trends and technologies, stakeholders can further enhance the efficiency and sustainability of the electricity sector.
 Keywords: Impact, Smart Grid, Energy, Efficiency, Review.