Grounding electrodes are used to ensure safe operation of electrical apparatus. The limited axial construction space for grounding electrodes is a significant constraining factor. Grounding performance will attenuate rapidly under the influence of the reduced length of horizontal or vertical grounding electrodes. However, if additional resistance-reducing measures are adopted, the operation and maintenance cost of grounding electrodes will considerably increase. To solve above problem, this study proposed a novel grounding model that uses a helical grounding electrode to improve grounding performance within limited axial construction space. Firstly, a calculation model of finite element methods (FEM) is built based on the concept of increasing the contact area between the grounding electrodes and the soil. Grounding performance parameters of helical grounding electrodes, grounding resistance, electrical potential rise (EPR) distribution and maximum touch voltage, are analyzed. At the same time, structural parameters and buried depth for the helical grounding electrodes are studied and the optimal design criteria for the parameters are given. Results show that the helical grounding electrode exhibits better grounding performance in a limited axial construction area.