The undulating membrane tidal energy converter is a device that uses the flutter instabilities occurring from the interaction between a slender body and a fluid flow. A new numerical model has been developed using a 2D corotational finite element method to represent the structure and the unsteady point-vortex method to compute the flow. These methods as well as the interaction process are presented. Trajectory and frequency of the undulating motion, hydrodynamic forces on the structure and velocity field in the wake are presented. Comparison shows a good agreement with experimental results obtained from a 1/20th scale prototype without power take off tested in flume tank.