With the construction of new power systems, the consumption of renewable energy sources, characterized by low marginal costs and high variability, challenges the system’s operational flexibility and reduces generators’ profits from the sale of energy. This paper explored market-based pathways for the integration of renewable energy. Firstly, a joint clearing model for energy and ancillary services that incorporates the renewable portfolio standard is proposed. Secondly, the pricing scheme, along with the market settlement process, has been established with a focus on how prices are determined by bids and opportunity costs among market products. This paper additionally explores the clearing order of each market product and the cost recovery property for market participants. Thirdly, the impact of increased renewable integration on supplier profitability is evaluated using the modified IEEE 14 bus system for validation.