A method and system for management of thermal energy produced during transcutaneous energy transmission to provide power to energize implanted medical devices. A phase changing material (PCM) acts as a heat sink to absorb thermal energy generated during the energy transfer process. The PCM can be thermally coupled to tissue proximate to an implanted medical device, enabling heat generated within the implantable device to be absorbed. The generation of heat during the energy transfer process is primarily caused by eddy currents induced in the implantable device by the magnetic flux produced by the energy transfer system. The PCM can also be used to absorb heat generated by the device producing the magnetic flux that is used to transcutaneously transfer electrical power to recharge a rechargeable power source or energize the implanted medical device.