Spark ignition (SI) engines are often used as distributed power generation applications. They ensure quick deployment, cost effective electricity, and are a valid choice for back-up power. An essential aspect for small size engines is to improve control margins without increasing the number of sensors. It is not uncommon to employ fixed ignition timing for such power units, with so called wasted spark systems. These feature two spark events per cycle, one during compression and one during the exhaust stroke. On the other hand, ever more complex control systems are applied for this engine category in the search for better efficiency and lower emissions. Control of actuators that is phased with the working cycle could represent a significant advantage in this context. A method previously developed for identifying top dead center (TDC) phasing offline was applied as an algorithm capable of performing the required task while the engine is running. It is based on current measurements in the secondary ignition circuit of systems that feature wasted spark operation. Validation was performed on a 50 cm3 SI unit connected to a 1 kW power generator. Statistical distribution during sequences of 1000 cycles recorded at five different levels of load was used for testing TDC identification capabilities. Results were also compared to evaluations based on engine speed measurements. The overall TDC identification success rate of the proposed algorithm was found to be over 99.8%.