The exoreversible thermodynamic model of an annular thermoelectric generator (ATEG) considering Thomson effect in conjunction with Peltier, Joule and Fourier heat conduction has been investigated using exergy analysis. New expressions for optimum current at the maximum power output and maximum energy, exergy efficiency conditions, and dimensionless irreversibilities in the ATEG are derived. The modified expression for figure of merit of a thermoelectric generator considering the Thomson effect has also been obtained. The results show that the power output, energy and exergy efficiency of the ATEG is lower than the flat plate thermoelectric generator. The effects of annular shape parameter (S-r = r(2)/r(1)), load resistance (R-L), dimensionless temperature ratio (theta = T-h/T-c) and the thermal and electrical contact resistances in power output, energy/exergy efficiency of the ATEG have been studied. It has also been proved that because of the influence of Thomson effect, the power output and energy/exergy efficiency of the ATEG is reduced. This study will help in the designing of the actual annular thermoelectric generation systems. (C) 2015 Elsevier Ltd. All rights reserved.