Transparent grid, as an advanced form of “Internet + smart energy”, is of great value in supporting energy transformation and promoting the development of new power systems. Based on the grid connection requirements of high-density distributed power supply, this paper provides specific grid connection methods and trend calculations and explores the impact of grid connection on high-density distributed power supply. Subsequently, the technical framework and blueprint of the transparent grid are proposed, combined with the grid visualization system to monitor the grid state visually, and based on the random matrix single-loop theory and ARIMA algorithm to realize fault identification and early warning of the transparent grid. The analysis of the algorithm shows that the fault identification has good rapidity, feasibility, and practicability, and while ensuring that no fault alarm is issued in the case of normal disturbance of distributed power supply, it is able to issue fault alarms for all locations and types of short-circuit faults in the system and determine the fault moment within 0.1s. It is “fast”, “accurate,” and “stable” in the research and judgment of active distribution network faults, and it is more intuitive in the assignment of risk levels, and it can identify the categories and levels of faults and realize the following Visualization of early warning.