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The main part of this chapter deals with introducing how to obtain models linear in parameters for real systems and then using observations from the system to estimate the parameters or to fit the models to the systems with a practical view. Karl Friedrich Gauss formulated the principle of least squares at the end of the eighteenth century and used it to determine the orbits of planets and asteroids (Astrom & Wittenmark, 1995). One of the main applications of on-line parameters estimation is self-tuning regulator in adaptive control; nevertheless other applications such as load monitoring or failure detection, estimation of some states to omit corresponding sensors and etc. also have great importance.

On-line Parameters Estimation with Application to Electrical Drives