This paper describes the concept and analysis of virtualization technology and possible virtualization scenarios, which can be used to create a new generation of intelligent electronic devices (IEDs). The overview of the concept was based on solutions used in conventional IT systems. A fully operational working lab environment, in which simulated IED models were implemented, has been successfully tested. Problems associated with environment launch are described. An analysis of the influence of virtual device time synchronization and resynchronization on their correct operations is performed. Time delays of communication when sending GOOSE messages between the IEDs using GOOSE packages are verified.