Embedded systems are characterized by the presence of a combination of dedicated processor and application specific software. With technological advances, although the number of transistors on a chip are increasing, the chip area is reducing thereby making power constraints a critical component of system design. In this paper, a scheme for efficient instruction level power profiling of an embedded processor is developed which incorporates a novel methodology to accurately determine the activity generated in the instruction stages of a pipelined processor. An accurate power model has been developed by using the associated net capacitances obtained from gate fanout values and the FPGA resource on which the respective nets are mapped. An open source LEON3 VHDL core has been employed at RTL level. An activity extraction tool has been developed that produces the activity count of each instruction from value change dump file produced by the simulator. To complement the power model, a capacitance extraction tool is also developed which takes mapping and routing information and gives the cumulative capacitance of each net. The activity count and associated capacitance of the nets provides a figure of merit for the power consumed by that instruction. Complete instruction set of LEON3 processor has been profiled in terms of power consumption. The corresponding power for any application is thus obtained instantaneously and consequently avoids low level power estimation overheads. Moreover, the effect as well as the dependence of instruction parameters such as operands and addresses on energy consumption has also been studied.