A system and method including a runtime thermal model that estimates individual component temperatures, permitting the system to only limit power when necessary or desirable. A power-limiting system for a vector-controlled AC induction motor includes a torque command system for generating a torque command; a thermal protection system determining a runtime estimate for a temperature of a component of a rotational electro-magnetic component of the vector-controlled AC induction motor; and a controller configured to generate a motor control signal for the vector-controlled AC induction motor responsive to the torque command, wherein the thermal protection system determines the runtime estimate responsive to a multi-node thermal model of the vector-controlled AC induction motor, and wherein the controller limits a power of the vector-controlled AC induction motor to maintain a component temperature below its critical temperature.