We analyse the integration of variable renewable energy technologies such as solar or wind into an electricity mix comprising of conventional energy technologies. We consider variability of the renewable energy resource as an important parameter for capacity investment and propose that wholesale electricity prices be contingent on the availability of the resource and passed to consumers through state-contingent retail contracts. The novelty of the paper lies in the redefinition of the role of retailers who are able to propose diversified energy delivery and price lists that allow consumers to choose an optimal electricity consumption based on their flexibility. By considering a competitive environment whereby consumers are utility maximizers and producers and retailers maximize profits, we find efficient partial equilibrium in contingent wholesale and retail markets.