Analysis of the energy balance for an exhaust system of a diesel engine fit with an automotive thermoelectric generator (ATEG) of our own design has been carried out. A special measurement system and dedicated software were developed to measure the power generated by the modules. The research object was a 1.3-l small diesel engine with power output of 66 kW. The tests were carried out on a dynamic engine test bed that allows reproduction of an actual driving cycle expressed as a function V = f(t), simulating drivetrain (clutch, transmission) operating characteristics, vehicle geometrical parameters, and driver behavior. Measurements of exhaust gas thermodynamic parameters (temperature, pressure, and mass flow) as well as the voltage and current generated by the thermoelectric modules were performed during tests of our own design. Based on the results obtained, the flow of exhaust gas energy in the entire exhaust system was determined along with the ATEG power output. The ideal area of the exhaust system for location of the ATEG was defined to ensure the highest thermal energy recovery efficiency.