In this paper we report on the development and characterisation of a small TPV prototype system, which uses silicon photocells and a rare earth selective emitter. A simulation model of this system was developed, which allows studying the system theoretically. The fabrication of the selective incandescent mantle emitter from Yb2O3and detailed measurements of its radiation power and emissivity are presented. The maximum emissivity was 0.85 at 1.27 eV. An emitter temperature of 1735 K was obtained for an approximately 75 cm2large emitter heated by a butane burner. A SnO2filter tube was developed. The photocell generator is composed of monocrystalline silicon solar cells and a water‐cooling circuit. The prototype system reached, without a selective filter and without preheating of the combustion air, a record electricity‐to‐gas power efficiency of 2.4 &percent;. We compare the experimentally achieved system efficiency with simulations using our model. The possibilities to further increase the system efficiency are discussed. © 2003 American Institute of Physics