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Dynamic control system often involv non-negligible time-delays that can affect the stability and performance of the closed-loop system. This paper presents the use of iterative dynamic programming via an absolute error penalty function approach, for minimum energy control of time-delay systems. A quadratic approxmation (QA) is used to determine the initial state profile for the delayed variables for each grid point integration. It is shown that the choice of an appropriate penalty function factor (PFF) depends on the relative size of the time-delay with respect to the final time, and on the expected value of the energy consumption. The results obtained corroborate the effectiveness of the method.