Micro compensator is a custom power device(CPD) with a primary functionality of reactive and harmonic current compensation with added functionality of Renewable Energy Management. It is designed to connect at the secondary of last mile distribution transformer, which is chosen as the abstraction layer for renewable energy management. This paper presents an IEC 61850 based model for Micro Compensator with use cases for communication, operation modes and different control functionality. A centralised and distributed approach for volt-VAr management is introduced as a use case. IEC 61850 GOOSE is used to coordinate all devices on the feeder for Volt/VAr control. A laboratory prototype for micro compensator is evaluated.