A thermal energy production and control system includes a heat recovery chiller, thermal energy storage, and a controller. The controller uses thermal energy load targets to generate control decisions for the heat recovery chiller and the thermal energy storage for a plurality of time steps of a time period. The control decisions include a first amount of hot thermal energy or cold thermal energy to be generated by the heat recovery chiller at a first time step of the time period and stored in the thermal energy storage and a second amount of the hot thermal energy or the cold thermal energy to be discharged from the thermal energy storage and used to satisfy one or more of the thermal energy load targets for a second time step of the time period. The controller operates the heat recovery chiller and the thermal energy storage in accordance with the control decisions.