Reachability Guarantees for Energy Arbitrage

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Hauptverfasser: Tapia, Tomás, Dvorkin, Yury
Format: Preprint
Veröffentlicht: 2026
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author Tapia, Tomás
Dvorkin, Yury
author_facet Tapia, Tomás
Dvorkin, Yury
contents This paper introduces a unified framework for battery energy arbitrage under uncertain market prices that integrates chance-constrained terminal state-of-charge requirements with online threshold policies. We first cast the multi-interval arbitrage problem as a stochastic dynamic program enhanced by a probabilistic end-of-horizon state-of-charge (SoC) constraint, ensuring with high confidence that the battery terminates within a prescribed energy band. We then apply a $k$-search algorithm to derive explicit charging (buying) and discharging (selling) thresholds with provable worst-case competitive ratio, and compute the corresponding action probabilities over the decision horizon. To compute exact distributions under operational limits, we develop a probability redistribution pruning method and use it to quantify the likelihood of meeting the terminal SoC band. Leveraging the resulting SoC distribution, we estimate the minimum stopping-time required to satisfy the SoC chance constraint. Computational experiments on historical real price data demonstrate that the proposed framework substantially improves the estimation of SoC evolution and supports chance-constraint satisfaction.
format Preprint
id arxiv_https___arxiv_org_abs_2601_12081
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Reachability Guarantees for Energy Arbitrage
Tapia, Tomás
Dvorkin, Yury
Systems and Control
This paper introduces a unified framework for battery energy arbitrage under uncertain market prices that integrates chance-constrained terminal state-of-charge requirements with online threshold policies. We first cast the multi-interval arbitrage problem as a stochastic dynamic program enhanced by a probabilistic end-of-horizon state-of-charge (SoC) constraint, ensuring with high confidence that the battery terminates within a prescribed energy band. We then apply a $k$-search algorithm to derive explicit charging (buying) and discharging (selling) thresholds with provable worst-case competitive ratio, and compute the corresponding action probabilities over the decision horizon. To compute exact distributions under operational limits, we develop a probability redistribution pruning method and use it to quantify the likelihood of meeting the terminal SoC band. Leveraging the resulting SoC distribution, we estimate the minimum stopping-time required to satisfy the SoC chance constraint. Computational experiments on historical real price data demonstrate that the proposed framework substantially improves the estimation of SoC evolution and supports chance-constraint satisfaction.
title Reachability Guarantees for Energy Arbitrage
topic Systems and Control
url https://arxiv.org/abs/2601.12081