In general, a thermoelectric converter exhibits low conversion efficiency due to the relatively small dimensionless figure of merit (zT less than or equal to 1) of currently available thermoelectric materials. This limits its application to specialised areas. Attempts to improve its economic viability have primarily focused on improving the conversion efficiency by increasing the figure of merit of thermoelectric materials, with only marginal success. A novel idea, which provides an alternative solution to overcome the low efficiency drawback, is to operate the thermoelectric converter in a combined heat and power generation mode (cogeneration). In this paper, a thermoelectric incorporated cogeneration system is proposed, and its key elements and advantages discussed.