A variable speed genset system is provided that may include a primary power source, an electric machine, an energy storage device, a boost converter, and a controller. The electric machine may be coupled to the primary power source and electrically coupled to a load through a common bus. The boost converter may be in electrical communication with the common bus and the energy storage device. The controller may determine a State of Health (SOH) for the energy storage device, selectively engage the energy storage device to provide a first power amount to the common bus, and selectively change the operating speed of the primary power source to provide a second power amount to the common bus, the speed based on the SOH, a temperature of the energy storage device, and the load demand. The combination of the first and second power amounts substantially meet a load power demand.