Disclosed herein is a fundamental modeling and control method in dynamic energy conversion and transfers in complex energy systems with multiple energy sources, fuel and electric. The multi-layered modeling enables efficient and stable operation through optimized coordination of engines and electric part of a hybrid turbo-electric distribution system (TeDP). A provable coordination of power and rate of change of power interactions between the components is done at the higher-system level. Advanced nonlinear control of components is disclosed to ensure that components meet power/rate of change of power commands given by the higher level. This method is used to demonstrate, for the first time, how rotor stall and surge instabilities in engines can be eliminated by controlling the electric generators and/or storage.