A power generating system using magnetic induction and a method of operating same are disclosed. The power generating system includes at least one stationary electromagnet receiving an excitation voltage from a power supply. The at least one stationary electromagnet has a north pole, a south pole and a magnetic field. The system also includes at least one stationary coil positioned inside the magnetic field and intersected by magnetic field lines of the at least one electromagnet such that when the at least one electromagnet is excited, an electromotive force (EMF) is induced in the at least one stationary coil. The power supplied may be AC or DC. The system also includes a frequency modulator for changing the rate of electric current introduced to the at least one electromagnet so that the change of current rate will cause an EMF to be induced in the coil.