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The traditional electrical grids deals with generation, transmission and distribution have one-way communication and are centered around the distributor. They also lack in routing and interconnection of different types of generations which lead to a reduction in the reliability of supply. Hence to overcome this issue we propose the comprehensive architecture of Smart Grid and it’s Observation and control using the Internet of Things (IoT) and Cloud Technology. We have Integrated the different sources of energy (thermal and renewable) in a system and introduces the automatic routing of electric power according to peak and low demand. It also incorporates the smart metering facility using IoT and Cloud Technology. It can gather, send and receive the real-time data, which provide two-way communication of data of power being consumed at customer’s end to the service producer. The whole data can be stored, accessed and analyzed on the very secured and customized API platform. We have built and thoroughly tested demonstration model of our project having Wi-Fi-based smart meter, which helped us to monitor and control the electric power and to enhance the reliability of the system.