This paper mainly introduces the operation process of the substation and introduces the reason and influence of power energy consumption. The energy function, classification, and application of substation equipment are briefly introduced. The monitoring application of power equipment in the substation is formed through the analysis of energy consumption data collection method, calculation basis, and energy consumption analysis method. The energy monitoring results of the substation are discussed. Energy saving is the main part of the design concept in substation operation. The energy saving substation provides good social, environmental and economic benefits for future engineering design. At present, the vacuum circuit breaker still has some limitations in the vacuum substation. If the circuit breaker fails, there will be undesirable consequences. This problem needs to be solved in time to avoid circuit breaker failure. The security of power consumption is hard to be guaranteed, which has a certain negative impact on the stability of the power supply. With the development of The Times, people’s demand for power resources is increasing. In today’s limited resources, how to meet the social power demand as far as possible, energy saving and consumption reduction are particularly important. The reduction of loss is equal to the transmission of more electricity under the same conditions, reducing the operating cost of power supply enterprises.