A Power generation system for conversion of wave motion in a body of water into electrical energy comprising a float; the said float is connected to a toothed rack through a hydraulic jack and the rack is coupled to a pinion means, a transmission unit for driving an output shaft, having two unidirectional drive means placed in opposite direction to one another; one drive means for driving the output shaft during upward movement of the rack and another drive means for driving the output shaft during downward movement of the rack whereby the output shaft is always driven in one direction, a power generation unit having a fly-wheel with a braking system and a motor coupled with a generator; the said power generating system having automatic regulating means which regulates the pressures to various means so as to control the generator speed in order to get the grid quality power and the transmission unit is supported by a concrete construction with the float moving in between four pillars of the support.