Recent interest in the tidal current industry has driven development of the prototype from the stand-alone turbine to the twin-turbine system. In this paper, we develop a numerical model to systematically analyze the relationship between the power output and the configuration of a twin-turbine system. First, we present the design principle of the twin-turbine system. We then develop the numerical model for simulating the operation of the system, and validate the model by conducting towing tank experimental tests. We then use the model to predict the power output of the system. The results of this study show that the total power output of a twin-turbine system with optimal layout can be about 25% higher than two times that of a stand-alone turbine. We also discuss the hydrodynamic interaction between the two turbines under different configurations of the system. We conclude that the optimally configured counter-rotating system should be a side-by-side system, and that the optimally configured co-rotating system should have the downstream turbine partially in the wake of the upstream turbine, depending on the detailed configuration of the turbine.