The discrepancy in the ratio between supply and demand is due to the increasing use of electrical appliances in customers’ daily use, an evolving problem in the energy sector. Moreover, the discrepancy in the ratio between supply to demand causes Grid failures due to which the entire region loses power. The energy sector faces numerous other problems such as improper monitoring and theft. The above problem needs to be addressed, and a flexible and portable system must be developed to cover a wide range of consumers and balance the overall system with proper real-time monitoring. This project aims to solve the problem of a complete power outage in a region and help manage the load more efficiently. This paper proposes an Internet of Things (IoT) based energy management system (EMS) for the optimal operation of unbalanced supply and load through microgrids. This IoT-based approach offers advanced capabilities for tracking energy consumption and detecting energy theft in real-time. In addition, this model allows for recording network components’ temperature and displaying vibrations, which contributes to preventive maintenance and improved network stability. The model’s results show that it has an outstanding accuracy rate of 95% that increases the efficiency and reliability of energy distribution, but also ensures a safer and more resilient power supply.