Abstract: The development of smart substations in China and Europe is analyzed based on survey and discussion by the workshop ofSubstations of the Future"organized by the R＆D Nester belonging to the State Grid Corporation of China and REN of Portugal.Firstly,the background is described;secondly,the definition of smart substation is presented,thirdly,the drive of development,the philosophy of smart substation,the benefit of smart substation,the focus and potential problems of development and construction of smart substation are discussed in detail.Then,the state of art and next step work of smart substation between China and Europe are presented.Finally,relevant suggestions for follow-up development of smart substations in China are made by referring to the concept of expansion of smart substations in Europe.