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A strategy is proposed to introduce a limited set of monitoring and control functions into a legacy low voltage distribution substation, and as such integrate it into a larger command and control architecture of a smart Microgrid. The focus of the work shall be on the retrofit strategy of some of the key components for measurement, monitoring, protection and control systems of the substation. Also Volt/VAR optimization of the feeder shall be considered as a part of the design. The article discusses the structure of the substation under study, followed by the actual design of IEC 61850 subsystems for the substation. A simulation model of the pilot project and its results is also included in the paper.