To show energy conservation and steady state you can use a power balance calculation. Power is the time derivate of work, so you need to show that
power_input < useable_power_output power_input > useable_power_output for any time point that is of interest. You can do this in any inertial frame. But conveniently you would choose an inertial frame, where one of the interacting (and thus potentially accelerating) objects is at rest at the analyzed time point (the object's instantaneous inertial rest frame).
As an example you can look at the DDWFTTW analyses which usually use the instantaneous inertial rest frame of the cart:
Drela, Mark. "Dead-Downwind Faster Than The Wind (DFTTW) Analysis".
http://www.boatdesign.net/forums/at...w-directly-downwind-faster-than-wind-ddw2.pdf
Gaunaa, Mac; Øye, Stig; Mikkelsen, Robert (2009). "Theory and Design of Flow Driven Vehicles Using Rotors for Energy Conversion". Marseille, France: Proceedings EWEC 2009.
http://orbit.dtu.dk/getResource?recordId=241183&objectId=2&versionId=1
Bauer, Andrew (1969). "Faster Than The Wind". Marina del Rey, California: First AIAA. Symposium on Sailing.
http://projects.m-qp-m.us/donkeypus...aster-Than-The-Wind-The-Ancient-Interface.pdf