A permanent magnet linear electrical machine power takeoff (PTO) unit is simulated on the direct drive wave energy converter in this paper, which is controlled to provide the required reactive power. A shape-based control is implemented to maximize the wave energy production (mechanical PTO) with the limiting constraints on the electric drive. Further, the linear electrical machine design is optimized such that the electrical power output is maximized (e.g., reduced power losses). The numerical simulations are conducted using MATLAB/Simulink and the Simscape toolbox. Linear wave theory is applied in modeling the buoy dynamics. Additionally, the PTO unit is composed of a linear electrical machine, an ideal inverter, and an ideal energy storage system. The results show the proposed PTO tracks the reference control accurately. The electrical power output is significantly improved by limiting the current in the PTO compared to a passive control.