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This paper proposes standards' based software and communication platform for implementation of distributed grid intelligence in FREEDM system. This enables system level design for distributed application and consistent mapping to the interfacing hardware. The system becomes scalable, reconfigurable and easily maintainable. Applying IEC 61499 standard for distributed and embedded applications and IEC 61850 standard for communication in substation, multi-agent design can be systematically introduced to power system automation. With this approach distributed grid intelligence nodes become intelligent, independent and interactive agents, with vendor independent software and unified communication. This concept is illustrated on an example of distributed intelligent fault management system, and verified through simulation.