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Power grid intellectualization is an important method to promote the development of renewable energy source and implement energy conservation and emission reduction.Along with the increasing development of power electronics,IT and communication technologies,the construction of smart grid is becoming an important development direction of electric power industry.At first the necessity of developing smart grid is demonstrated;then the required performance of smart grid are introduced,including self-government and self-healing ability,defensive quality,compatibility of power grid,high efficient operation and management,outstanding quality and friendliness,convenience of power transaction.It is pointed out that to implement smart grid it is necessary to strengthen the research and development in two respects,i.e.,the basic technologies and realization of functions.Basic technologies for smart grid mainly contain four issues,namely power equipments,measurement and communication devices,information management system,decision-making and control theory;the realization of functions mainly contain five issues,namely smart control centre,smart substations,smart transmission and distribution lines,smart relay protection system and smart demand side management.Finally,the performance appraisal system is briefly dissertated in power grid performance,economic effect and social effect.Solution of above-mentioned problems will contribute to the deep study and application of smart grid.