The compensation of cascade hydropower stations is discussed.The allocation model of power generation benefit in cascade hydropower stations is proposed under multiple power generation subjects.The compensation weights of each hydropower station are confirmed based on total generating capacity.According to the weighting coefficient,the increased power output and increased benefits of each station are re-allocated.As a result,the benefits of hydropower stations will be optimized because each station changes its goal from price competition to whole benefits improvement.Furthermore,time compensation is also discussed in order to make reasonable compensation.