The concept of energy internet (EI) is very promising due to its ability to integrate distributed generators and storage devices. Energy routers (ERs) enable highly efficient, reliable and flexible power system operation. To dynamically control and optimize energy flow in EI, an extensive communication is required. Considering the diversity of generators and ERs, it is crucial that such communication is achieved in a standardized and interoperable way. In this paper, an improved energy routing algorithm and its impact in EI operation are demonstrated. Furthermore, a full communication solution is developed for ERs and their interaction with grid operator. This paper proposes an IEC 61850 communication-based power routing algorithm in microgrids. Optimal selection of source and routing path is achieved according to the proposed algorithm and communicated to the ERs via IEC 61850 based communication. The effectiveness of the proposed IEC 61850 communication-based routing algorithm is verified on network emulation platform comprising of IEC 61850 emulator tools and network simulator tool.