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Nowadays in automobile field many new innovating concepts are being developed. Electricity is the basic need for automobiles. By using indirect methods (fossil fuel, oil, gas, etc.,) and direct method, electricity can be generated. The Indirect methods include Rankine cycles, Sterline Cycle and Refrignation. Indirect methods causes environmental pollution, so the direct method is implemented by using Thermo Electric Generator (TEG), it can be convert engine heat exhaust into electrical energy, which can be stored in a battery for later consumption. By using this energy, Thermo Electric Cooler (TEC) is implemented in engine blocks to reduced exhaust heat of the engine. The application of this concept is the overall efficiency of the energy conversion system to improve.