A thermoelectric generator system was developed to convert low grade waste heat from a bulb inside an optical projection system into electricity. A new type of thermoelectric module with (Bi,Sb)2(Te,Se)3 compounds and intended for consumer use was installed in the system. Bismuth-telluride-based thermoelectric compounds with fine grains and unidirectional crystal orientation prepared using a rapid solidification technique, exhibited high performance at temperatures ranging from 298 to 473 K. Thermoelectric properties were optimized by controlling the microstructure and oxygen content of the specimens. A maximum conversion efficiency of 5.7% was obtained from the developed thermoelectric module at a temperature differential of 150 K (Tc = 323 K, Th = 473 K). A thermoelectric power generating system using a new type of aluminum alloy reflector was developed and evaluated for the prototype projection system