A method for operating a renewable energy facility having a plurality of power sources includes defining a plurality of modes of operation for each of the plurality of power sources. The method also includes receiving one or more required active power set points for the renewable energy facility and/or groups of the plurality of power sources. Further, the method includes determining an operating mode command that defines which of the plurality of modes of operation to use for each of the plurality of power sources to reach the one or more required active power set points. Moreover, the method includes dynamically switching into the plurality of modes of operation defined in the operating mode command.