The method involves receiving a plurality of current operating parameters of an engine during operation of engine and determining at least one of a current substitution ratio and a current peak cylinder pressure based on the plurality of current operating parameters. The method also involves determining at least one of a target substitution ratio and a predefined peak cylinder pressure based on the plurality of current operating parameters and comparing at least one of the current substitution ratio with the target substitution ratio and the current peak cylinder pressure with the predefined peak cylinder pressure. The method also involves controlling a first power output from a plurality of engine cylinders and a second power output from an electric turbo-compounding system, based on the comparison of at least one of the current substitution ratio with the target substitution ratio and the current peak cylinder pressure with the predefined peak cylinder pressure.