Voltage sag from sudden increasing loads is one of the major problems in the utility network. In order to compensate the voltage sag problem, power compensation devices have widely been developed. In the case of voltage sag, it needs an energy source to overcome the energy caused by voltage sag. According as the SMES device is characterized by its very high response time of charge and discharge, it has widely been researched and developed for more than 20 years. However, before the installation of SMES into utility, the system analysis has to be carried out with a certain simulation tool. This paper presents a real-time simulation algorithm for the SMES system by using the miniaturized SMES model coil whose properties are same as those of real size SMES coil. With this method, researchers can easily analyse the performance of SMES connected into utility network by abstracting the properties from the real modeled SMES coil and using the virtual simulated power network in RSCAD/RTDS.