Based on the physical network (China's smart grid is based on ultra high voltage power grid's backbone frame, based on strong power grid voltage grid coordinate development), modern advanced sensing technology, communication technology, information technology, computer technology and control technology and high physical power grid integration and the formation of a new network. In order to fully meet the user's power demand and optimizing the allocation of resources, ensure that the power supply of the security, reliability, and economy, and to meet environmental constraints, ensure power quality, power market development for the purpose of realization of reliable, economical and clean power supply, interactive and value-added services.