This paper presents implementation of the Distributed Grid Intelligence (DGI) applications such as Intelligent Fault Management and Load Balancing using IEC61499 reference architecture. This enables system level design of distributed applications with a direct pathway to deployment to hardware. The use of IEC 61499 improves scalability, re-configurability and maintainability of automation software. Both applications were verified using co-simulation approach: control and power system simulated on PCs, and power system simulation on a PC networked with the number of distributed hardware running control algorithm. Both DGI applications were deployed to commercial programmable automation devices and embedded controllers. The use of IEC 61499 facilitates deployment of hardware independent function block model to the variety of compliant hardware. The paper also discusses distributed SCADA concept with IEC61499 implemented with the so-called Composite Automation Type (CAT) function blocks which combine functional and visual components. These blocks are used to implement human-machine interface of the FREEDM Smart Grid demonstrator reacting on plugging and unplugging of energy resources