The energy demand is projected to double in the next 40 years, necessitating a transition to cleaner energy sources in countries like India, which currently rely heavily on conventional fuels like coal, diesel, and gas. The United Nations Sustainable Development Goals aim to achieve global access to reliable, modern, and affordable energy by 2030, aligning with the shift towards cleaner energy production and reduced carbon emissions in countries like India and China. India’s Draft IoT Policy highlights the evolving nature of IoT in India, emphasizing the need for standardized policies to harness its potential for economic growth and innovation. The Fourth Industrial Revolution and initiatives like “Digital India” also underscore the importance of adopting IoT and other advanced technologies for sustainable urban planning and energy management. The chapter explores the role of Internet of Things (IoT) in the energy transition, focusing on opportunities and challenges in India while drawing lessons from Japanese Smart Community Initiatives. The policy proposes a three-tier structure for IoT governance, comprising an advisory committee, governance committee, and a program management unit, to ensure effective regulation and enforcement. The chapter provides insights into the potential of IoT to drive energy efficiency, enhance renewable energy integration, and optimize energy management systems in the context of India’s energy transition challenges and opportunities.