In one embodiment, a grid application function is hosted at a primary grid device in a utility grid, which may determine whether or not to distribute at least a portion of the grid application function to one or more distributed secondary grid devices in the utility grid. In general, the one or more distributed secondary grid devices will be associated with a subset of the utility grid that is associated with the primary grid device (e.g., a sub-grid). Once a determination has been made, the primary grid device may dynamically distribute the grid application function, or a portion thereof, to the distributed secondary devices according to the determination. In addition, in another embodiment, the grid application function may also be withdrawn, such as from a particular secondary grid device or else from the primary grid device to an originating grid device.