This paper investigates a novel variable-speed generation system. A new integrated power circuit with voltage clamp protection and self-excitation function is presented. Conventionally, due to the large internal impedance of a generator, oscillations are produced by the resonances of the filter in armature currents which may cause unstable behavior of the generation system. In this paper, an active damping control algorithm cooperated with matrix converter (MC) instantaneous value synthesizing modulation strategy is proposed to suppress oscillations of MC input currents effectively. In addition, a closed-loop voltage control scheme with MC constant transfer ratio and hybrid excitation synchronous generator excitation current regulation is studied. At last, the feasibility of the overall system and schemes has been verified by the experimental results.