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This lecture covers the theory and practical applications of optimization in energy system modeling, focusing on decision variables, objective functions, and constraints. It explains different optimization strategies, such as black box, simultaneous, and hybrid methods, and their pros and cons. The lecture also delves into parameter estimation problems, optimization problem types, and the use of heuristic methods. The slides detail the modeling of energy conversion, thermodynamic properties, and the equilibrium of mixtures. The lecture emphasizes the systematic implementation of equations of state, the calculation of thermodynamic properties, and the estimation of chemical equilibrium. It concludes with a discussion on constitutive equations, empirical correlations, and the representation of thermodynamic properties of pure components.