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A purely software-based approach for Real-Time Simulation (RTS) may have difficulties in meeting real-time constraints for complex physical model simulations. In this paper, the authors present a methodology for the design and implementation of RTS algorithms, based on the use of Field-Programmable Gate Array (FPGA) technology to improve the response time of these models. Their methodology utilizes traditional hardware/software co-design approaches to generate a heterogeneous architecture for an FPGA-based simulator. The hardware design was optimized such that it efficiently utilizes the parallel nature of FPGAs and pipelines the independent operations.