Taking into consideration the lack of circumstantial alertness, automated fault analysis and labor-saving switches, the present-day electrical power grid system has been deteriorating day by day. The backbone technology of this grid system is too ill-fitted to the on-going demand for electricity. Despite the fact that the government of Bangladesh has set a new target of reaching the total power generation to be 40,000 MW by 2030. Hence the infrastructure and corresponding technology of the electrical power sector are required to be modernized to cope with this gigantic target within a short time. Another challenging fact is that the rapid expansion of population and power-intensive industrialization trigger off the carbon emissions that lead to global climate change. Also, the constraints of electricity generation capacity, unidirectional way of communication, failure of power equipment and dropping off conventional sources of energy impose burden on the existing electric power grid. This paper articulates the needfulness of reflection on CO2 emissions or reduction in the electricity bill of the consumer in developing countries by employing a mathematical model and by proposing some fruitful methods to implement AMI for smart grid.