A system includes a power generation system and a controller. The controller includes processors that receive a first set of inputs. The processors also generate a first set of modeled outputs system based on a model of the power generation system and the first set of inputs. The processors further receive a first set of measured outputs corresponding to the first set of modeled outputs. The processors determine a first correction factor based on the first set of modeled outputs and the first set of measured outputs. The first correction factor includes differences between the first set of modeled outputs and the first set of measured outputs. The processors also generate a second set of modeled outputs based on the model, a second set of inputs, and the first correction factor. The processors further control an operation of the power generation system based on the second set of modeled outputs.