The paper studies the theory about the corrosion as well as the broken point of the grounding grid in power plants and substations. By using sensitivity analysis, failure diagnosis equation is put up through rigorous theoretical analysis. Meanwhile the problem of morbid equation is solved by introducing lowest energy theory and technique of optimiation to diagnosis equation solution of grounding grid combined with definite constraint condition and linear or non-linear objective function, the fault diagnosis equation is discussed. The results of emulation calculation and analogous experiments verify the correctness,feasibility and practicality of the theory and method.