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Oh yeah, I kind of skipped over that, but I actually meant that more flexible consumption helps bring down baseload demand, and in turn the need for backup generation as well once we reach that point where that matters.
Really good explanation of the issue though. Personally, I'm a bit more optimistic about being able to be more flexible demand. Particularly EVs and heat pumps are two areas where a smart grid can help shape demand without even being noticed by the people (apart from cheaper tariffs) as long as the car is fully charged in the morning and the room temperature is maintained.
Those are both good points.
Yes a smarter grid with dynamic control over high powered devices like heat pumps and EV/Hybrid Car-to-Grid chargers to actively control consumption would be a good idea.
Heck, there's even been trials for micro-grids with local power generation being distributed out with something called Open Energy Monitor to schedule in things like washing machines and dryers for members of the small community co-operative that run the micro grid.
The biggest cost with EV Car-to-Grid is the cost of the vehicle and then after that, if your house / business premises is older than roughly 30 years, the power cables into the house are not rated for the power delivery and will have to be replaced.
With heat pumps you again have the issue of the cost of the heat pump itself and the installation.
Both are solvable but it will require large amounts of government grant money to do so.