The investment proportion of distribution network projects in power grid corporation is increasing in recent years. However, due to the large number and complex types of distribution network projects, and the heavy workload of cost data processing and analysis, the cost management and cost level analysis of distribution network projects have been short boards of power grid corporation. From the characteristics of distribution network projects, fully considering the item segregation of construction budget and the depth of data, the cost level analysis index system for distribution network projects is constructed, and the pretreatment method for basic cost data is proposed. Combining with project examples, three kinds of analysis methods of distribution network projects, i.e., the comparative analysis method, the cost composition analysis method, the influence factor analysis method are discussed. These methods have achieved good results in the application of China Southern Power Grid.