In view of the current smart substation in SCD virtual terminal connection from workload, high error rate and low efficiency, this paper proposes a virtual circuit automatic generation technology to improve the efficiency of SCD virtual terminal connection. A method of automatic generation of virtual circuit based on template library is proposed by using the virtual circuit design template and a virtual circuit automatic generation of technology is developed. The technology can parse the template file, according to the template file IED name, IED description, GOOSE, SV inputs and outputs of the description of Keywords, reference names and other information to find and replace, and finally automatically generate SCD virtual circuit. With actual engineering verification, it proves that the method has powerful compatibility and is applicable to various kinds of devices of different equipment manufacturers. Additionally, it can help designer to complete the virtual circuit automatically, ensure the accuracy of the virtual terminal connection of SCD, and improve working efficiency of all professional workers.