why not take this further?
Much of our focus is on centralized generation and distribution. Maybe we are underestimating what can be done at the point of use. Distributed generation and storage seem highly efficient ways to augment smart grids.
Solar water heating, electric vehicle batteries, heat storage/recovery, grid-tie solar, cooling storage, and co-generation at homes, building and factories can lower energy demand peaks on the grid and, utilize intermittent and excess generation capacity during points of low demand.
Perhaps instead of more regulation and subsidies we could develop energy "contracts" between the utilities and their customers. The customers contact to use, supply and/or conserve energy on demand as needed for grid balancing.