GenCos decision-making constrained by operational and financial requirements

In the new power business, the goal of electric generation companies is to commit their services at profit. The committed services will determine the future cash flows and consequently financial performance. However, purely generation assets´ cash flows are path-dependent, since the path dependency relies on operational generating units´ constraints. This paper focuses on the GenCos´ future cash revenue flows required to fulfill total costs and financial requirements. For simplicity´s sake, the future cash flows are dependent on a single commodity, electric energy.