The energy sector is undergoing a significant transformation, driven by the urgent need to address climate change, enhance energy security, and cater to the growing demand for electricity. In the context of escalating global energy demands and environmental concerns, this study investigates the integration and application of smart grid and microgrid technologies within the Western Pipeline Company’s operations. Addressing the critical need for sustainable energy solutions, our research focuses on enhancing system efficiency, reliability, and user satisfaction while reducing environmental impacts. Our findings reveal significant improvements in peak load reduction (15.3%), total energy reduction (20.46%), and carbon emission reduction (30.01%) compared to conventional methods. Moreover, the study demonstrates a marked increase in system reliability (95.35%) and a substantial decrease in response times (2.6 seconds), highlighting the efficiency of our integrated energy management strategies. The research also underscores notable advancements in customer satisfaction (90.13%), maintenance cost reduction (50.4%), and renewable energy utilization (75.80%), affirming the effectiveness and economic viability of implementing advanced grid technologies.