A rotary motion powered system for energizing light emitting diodes is taught that utilizes a permanent magnet generator (20) located within a vehicle wheel (64) for producing the requisite electric power. The generator consists of two main elements: a rotating portion (26) and a stationary portion (28). The rotating portion utilizes a base (30) that is attached directly to an adapter base (72) attached to the vehicle wheel, and the stationary portion includes a counter weight (62), thus permitting this portion to remain horizontal when the wheel is rotating. An ac/dc bridge rectifier (22) is in electrical communication with the generator output to change the alternating current produced by the permanent magnet generator to direct current. A number of light emitting diodes are disposed within a vehicle wheel member and are powered by the direct current power, thereby producing an unusual and unique visual effect when the wheel is rotating.