The electricity sector is undergoing major changes from the point of view of management and market. One of the keys that are accelerating this change is the increasing penetration of Distributed Energy Resources (DERs). The complexity of the scenario envisaged in the near future requires that the equipment in the electrical network must have the capacity to interact in a much more dynamic way than in the current system, and where the connection interface should be provided with the necessary intelligence and communication capability to manage the whole system effectively. This paper describes the development of an Intelligent Electronic Device (IED) that can integrate into the current and future grid equipment. Specifications and considerations for their design as well as its multifunctional architecture are discussed. The developed prototype was subjected to a testing protocol Class A, according to IEC 61000-4-30 to check the monitoring parameters. Various tests for estimating the delays involved in the protection algorithms are presented also. Finally, a real test scenario is discussed, in which the prototype has been integrated into an inverter providing it with the capabilities required by a future Smart Grid context.