A compact damping ring with limited circumference of about 160 m is proposed for producing kilowatt-level coherent EUV radiation. The electron bunch in the ring is modulated by a 257nm wavelength laser with the help of the angular dispersion induced micro-bunching method [C. Feng and Z. Zhao, Sci. Rep. 7, 4724 (2017)]. Coherent radiation at 13.5 nm with an average power of about 2.5 kW can be achieved with the state-of-the-art accelerator and laser technologies.