Energy markets are some of the most complex set of competing incentives I've worked with. You're not going to get a simple microecon theory, because it's actua

Energy markets are some of the most complex set of competing incentives I've worked with. You're not going to get a simple microecon theory, because it's actually many different related markets interacting with each other and fighting often conflicting policy goals. Here's a good lecture that dives into some structures and why it's complicated: https://youtu.be/tsfBewWIF9c?t=21m47s https://youtu.be/tsfBewWIF9c?t=21m47s (this is the market structure bit, the first chunk is all about renewables in new england) Get your wonk hat on, you're going down the rabbit hole. Your econ-style graphs start around the 26:30 mark. If it was a simple explanation, we wouldn't have these issues. Complex systems produce chaotic results.