The global energy sector is currently undergoing a significant transformation to address sustainability, energy efficiency, and grid resilience. Smart grids, leveraging advanced technologies like the power internet of things (PIoT), play a crucial role in this transformation. This research focuses on enhancing the efficiency, reliability, and sustainability of electricity distribution through IoT technologies. It envisions a system where interconnected devices, sensors, and data analytics optimize energy consumption, monitor grid conditions, and manage demand response scenarios. Central to this effort is the integration of PIoT into the smart grid infrastructure, particularly in implementing dynamic pricing strategies for demand response. Leveraging power line communication (PLC) techniques, this innovative approach facilitates real-time communication between grid components and consumers. The results demonstrate improved grid stability through dynamic load management, effectively responding to demand fluctuations, and minimizing disruptions. The deployment of dynamic pricing methods using PLC-driven schemes empowers customers by offering access to real-time energy use data. This access incentivizes energy-efficient behavior. leading to a 30% increase in the adoption of energy-saving techniques among consumers. A utility company pilot study claimed a 12% drop in peak demand after adopting time-of-use charges, with an accuracy rate of 98.87% in total.