IEC 61499 is an open standard based on function blocks applied for distributed automation solutions. In this paper we discuss the application of IEC 61499 for designing and implementing event-based Smart Grid applications. We show that IEC 61499 is well suited in the context of Smart Grids at the example of the concrete use case of power exchange between several peers of the Smart Grid. The feasibility of IEC 61499 in the context of this use case is assessed on the basis of a prototypical implementation using the open source framework 4DIAC. We conclude that IEC 61499 is a powerful tool for engineering event-based Smart Grid applications.