Hierarchichal Model Communication and Control in a Managed Electrical System

One embodiment of the present invention provides an energy-management system for managing energy within a predominantly closed power system. The system includes an upper-level energy-management module (802), at least one lower-level energy-management module (806) coupled to the upper-level energy-management module, and at least one component (812) coupled to the lower-level energy-management module (806). The component (812) is configured to provide a performance model associated with the component to the lower-level energy-management module. The lower-level energy-management module is configured to provide an aggregated model to the upper-level energy-management module.