INCORPORATING A DEMAND CHARGE IN CENTRAL PLANT OPTIMIZATION

An optimization system for a central plant includes a processing circuit configured to receive load prediction data indicating building energy loads and utility rate data indicating a price of one or more resources consumed by equipment of the central plant to serve the building energy loads. The optimization system includes a high level optimization module configured to generate an objective function that expresses a total monetary cost of operating the central plant over an optimization period as a function of the utility rate data and an amount of the one or more resources consumed by the central plant equipment. The optimization system includes a demand charge module configured to modify the objective function to account for a demand charge indicating a cost associated with maximum power consumption during a demand charge period. The high level optimization module is configured to optimize the objective function over the demand charge period.