A method and system for estimating power consumption for at least one Intellectual Property (IP) block in an integrated circuit (IC) design includes identifying at least one port in the at least one IP block. The at least one port is associated with at least one operation. A sequence of micro-operations of the at least one operation is identified. The sequence of micro-operations constitutes an operation pipeline. A set of micro-operations per cycle in the operation pipeline and energy per cycle of each cycle of the operation pipeline, based on the set of micro-operations per cycle by using one or more of, an idle energy value, a micro-operation isolated energy (MIE) value, an overlap energy (OE) value, and a micro-operation overlap energy (MOE) value, are determined. Then the power consumption of the at least one IP block is determined using the energy per cycle of each cycle of the operation pipeline.