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 the optimization period as a function of the utility rate data and an amount of the one or more resources consumed by multiple groups of the central plant equipment. The optimization system includes a load change penalty module configured to modify the objective function to account for a load change penalty resulting from a change in an amount of the building energy loads assigned to one or more of the groups of central plant equipment.
