The authors designed and manufactured a toroidal-type superconducting magnetic energy storage (SMES) system. The toroidal-type SMES was designed using a 3D CAD program. The toroidal-type magnet consists of 30 double pancake coils (DPCs). The single pancake coils (SPCs), which constitute the double pancake coils, are arranged at an angle of 6° from each other, based on the central axis of the toroidal-type magnet. The cooling method used for the toroidal-type SMES is the conduction cooling type. When the cooling method for the toroidal-type SMES was designed, the two-stage Gifford–McMahon (GM) refrigerator was considered. The Bi-2223 HTS wire, which was made by soldering brass on both sides of the superconductor, is used for the magnet winding. Finally, the authors connected the toroidal-type SMES to a real-time digital simulator (RSCAD/RTDS) to simulate voltage sag compensation in a power utility.