Abstract: With the increase in population the energy consumption has also increased. Human race is in search of new technology for different energy sources to meet the present demand. Thermoelectric generation is one such emerging technology. This technology uses the waste heat carried away in flue gas or smoke passing through chimney, automobiles, exhaust etc. which is let into the environment to extract electric power. The conversion from heat to electric potential is done with the help of a device called Thermopile. This work primarily concentrates on two objective. Firstly to determine the electric potential at the junction of two different materials. secondly to utilize the developed potential (to operate the load or can be stored in battery).This is an attempt to acknowledge a new technology, a renewable and cost effective one, This will be an alternative source to meet the present demand of energy consumption. This paper describes a method to extract electrical energy from exhaust of a chimney. This can be further extended to other system exhausts also.