A new power generation system using electro-conductive polymer and its mixture with magnetic fluid is introduced. The system using non-poison electro-conductive polymer and its mixture with magnetic fluid and operating at room temperature is proposed in the present paper. The system could be used as a micro-distributed energy supply system for domestic use in the future. An experimental set-up is designed and established to investigate the performance of the power generation with an aid of a theoretical analysis of the power generation. It is found that the theoretical results are in good agreement with the measured data. Based on the obtained results, the electric output increases with Reynolds number, size of the test channel, magnetic strength and electric conductivity. It is understood that in order to obtain a practical power generation, priority should be put on increasing fluid flow velocity and magnetic field strength.