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An intelligent control architecture for the Smart Grid is proposed which combines two recently developed industrial standards. The utility network is modelled as IEC 61850-compliant logical nodes, embedded in an IEC 61499 distributed automation framework. We make the case that an incremental approach is required for the transition to the future Energy Web by bringing intelligence down to the level of substation automation devices to enrich the applications that can be created using interoperable Smart Grid devices. Using Matlab-based simulation environment we demonstrate that the collaborative environment achieves self-healing through simple fault location and power restoration.