The paper presents the construction and implementation of an accurate PSCAD model of the pilot protection system designed for use in the next generation FREEDM distribution system. This pilot system features a central microcontroller which uses an algorithm to process data that is communicated from current transformers connected to sampling devices. The indicated system is based on differential relay protection concepts. Using the proposed algorithm the system is capable of recognizing the existence of a fault much faster than traditional protection schemes. The model's control logic and behavior are matched to the hardware prototype. The completed model is integrated into the IEEE 34-bus test feeder and multiple simulation experiments are conducted to test the feasibility of the pilot system in a large scale, multi-load, radial distribution system with distributed energy generation.