Located on the northwestern of Taiwan, the Matsu archipelago is near mainland China and comprises four islands: Nangan, Beigan, Juguang, and Dongyin. The population of Matsu totals 11,196 and is chiefly concentrated on Nangan and Beigan. From 1971 to 2000, Matsu built five oil-fired power plants with a total installed capacity of 47 MW. However, the emissions and noise generated by the oil-fired power plant has caused damage to Matsu’s environment, and the cost of fuel is high due to the long-distance shipping from Taiwan. Developing renewable energy in Matsu has therefore been a fervent topic for the Taiwan government, and tidal power is considered to be of the highest priority due to Matsu’s large tidal range (4.29 m in average) and its semidiurnal tide. Moreover, the islands of Nangan and Beigan are composed of granite and have natural harbors, rendering them ideal places for coastal engineering of tidal power plants. This paper begins with a renewable energy reserves assessment in Matsu to determine the amount of tidal energy. Next, a tidal turbine type of the lowest cost is chosen, and then its dynamic characteristic, performance, and related design are analyzed. Finally, the coastal engineering condition was investigated, and a conceptual design for tidal power plant is proposed.