hercules68 said:
Thermoelectrics convert heat to electric power (albeit a meager amount), It reduces the entropy of a system.
Does this mean that it defies the second law of thermodynamics !
No. A thermoelectric refrigerator, like all other refrigerators, uses work to move entropy from a low temperature area to a high temperature area. Moving entropy with work does not violate the second law of thermodynamics.
The second law of thermodynamics states that the total entropy of a closed system can not spontaneously decrease. Thus, total entropy can not be destroyed. However, entropy can be moved.
A thermoelectric cooler would work like this. Let us suppose that there is a cold reservoir and a hot reservoir that are connected through the cooler. Electric current would flow into the cooler against a voltage gradient. Thus, the electric charges will do work on the system. Entropy will flow then flow from the cold reservoir to the hot reservoir.
The transport of entropy in this case is not spontaneous because it would not happen without the work done by the electric charges. The efficiency of such a system would be less than an equivalent Carnot refrigerator if it replaced the thermoelectric refrigerator.
Note that the thermoelectric refrigerator creates entropy. Although the temperature of the cold reservoir decreases, the temperature of the hot reservoir increases still more. The resistance of the wires and contacts outside the thermoelectric substance will result in heating that has nothing to do with the thermoelectric substance.
Here is a link to a Wikipedia article on thermoelectric cooling. Note that the thermoelectric cooler is no more that 10% as efficient as a Carnot refrigerator. Thus, it can’t decrease the total energy of the universe. In fact, it would increase the total entropy of the universe.
http://en.wikipedia.org/wiki/Thermoelectric_cooling
“Thermoelectric junctions are generally only around 5–10% as efficient as the ideal refrigerator (Carnot cycle), compared with 40–60% achieved by conventional compression cycle systems (reverse Rankine systems using compression/expansion). Due to the relatively low efficiency, thermoelectric cooling is generally only used in environments where the solid state nature (no moving parts, maintenance-free, compact size) outweighs pure efficiency.”