The invention discloses a method for automatically generating a virtual circuit of a substation configuration description on the basis of a template library. The method comprises the following steps that: according to the substation configuration description, creating a plurality of virtual circuit templates of different equipment types for storing a virtual terminal connection way, and forming a virtual circuit template library; and matching intelligent electronic equipment in a plurality of different substation configuration descriptions with the virtual circuit template library to obtain the corresponding virtual circuit template, and automatically generating corresponding virtual terminal connection according to the virtual circuit template. A Chinese and English word segmentation technology and a similarity algorithm are introduced to solve the problem of the automatic creating and the reusability of the template, the equipment template library is continuously upgraded and maintained, a batch design method is adopted to select templates and living examples of a corresponding type, the manufacture of the SCD (Substation Configuration Description) can be quickly and efficiently finished, and efficiency can be improved on the aspect of the automatic design of the SCD.