Growing popularity of distributed generation is drawing special attention to communication technologies in smart power grids. This paper provides a detailed overview of the communication protocols utilized in the modern distributed grid laboratory. It describes both wired and wireless technologies used in Smart Grid and presents the remote operation of switching the subsystem from grid mode to island mode operating under nominal conditions. It shows the duration of power outages during a transfer to island mode with diesel generator running on idle - which simulates planned islanding and diesel generator stationary, which simulates unplanned islanding. Latency between registration of disturbance and executing control command is measured. The results obtained are compared with current legislation. The consequences to the power system that are possible in both scenarios are highlighted. Obtained results and description of the communication technologies can be useful for the design of distributed power grids, island-mode power grids, and Smart Grids, as well as for further research in the area of using combustion fuel generators as a primary power supply in the microgrid.