The hot word in the power grid these days is ‘dispatchability’. The ability to adjust power output, or on the other end, adjust power consumption on demand is vital to balancing the grid1. Dispatchable generation and dispatchable loads will become increasingly valuable with heavier penetration of non-dispatchable renewable generation, such as wind and solar.
The favorable economics of renewables and zero marginal cost of production mean that in many cases, it will make economic sense to overbuild generation capacity and simply curtail production when it isn’t needed. An even more economically sensible option is for large consumers with load flexibility to perform demand response, turning up their consumption when electricity is plentiful and turning down or even idling when generation is low.