Systems and methods for constrained optimization of a hybrid power system that accounts for asset maintenance and degradation

Systems and methods for operating a hybrid power system are disclosed. A controller may perform operations, including: obtaining load data for the hybrid power system; obtaining power availability data and energy cost data for each power asset in each power asset group of a plurality of power asset groups; and determining active power commands for each power asset by performing at least one optimization, such that the determined active power commands optimize a total operating cost, wherein: the at least one optimization is based on at least one cost function that accounts for asset degradation, asset maintenance cost, asset operation efficiency cost, and the energy cost data; and the at least one optimization is constrained by a plurality of constraints based on the load data, the power availability data, and characteristics of the power assets; and operating each power asset based on the determined active power commands.