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Cost-Aware Reinforcement Learning with Action Masking and Projection for Battery Energy Storage Dispatch under Suppressed-Spread Market Shifts

arXiv · AI, language, vision and robotics · article · Sep 20, 2026 · UTC

Battery energy storage system (BESS) dispatch must preserve operational feasibility while declining price spreads reduce the margin available to pay for cycling. We study a proximal policy optimization (PPO) controller whose pre-selection physical action mask and emergency projection are separated from a causal, forecast-informed economic advisory. All forecast-dependent methods receive the same causal 24-step forecast and grid-side settlement. Across five PPO seeds, advice-on net profit is 30.59 and 18.04 USD per 336-hour T1 and T2 window, versus 36.77 and 22.94 USD for proxy-cost MPC; PPO re

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