Peltier plate is burned!?

Yes, of course! On one side the heat is pulled out of the Peltier, on the other side the "heat" is pulled off the box. For best efficiency you need a heat sink and a fan on either side.

But if I just put the heatsink on only one side does this affect the system efficiency or does it cause the Peltier to burn?

Answered in post #20.

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