Since the West Sea experiences a big difference in tides, the output power of the small marine hydroelectric power plant varies with the tide. When an induction generator is used here for small hydroelectric power, the reactive power capacitor should be installed at the generator main bus to compensate for the changes in power. As such, the sizing method for the power compensation of the induction generator is reviewed and an optimal method for compensation is suggested. The self-excitation minimum capacitor capacity method, which prevents high voltages, and the power factor automatic control method, which retains a power factor of greater than 90% are reviewed. The compensation effect of reactive power is confirmed through a case study.