Interesting idea though. The paper seems like it’s pushing a product instead of pushing concepts, because the applicability of this concept goes much broader than the article goes into, for greater benefit to the consumer. A heat pump (a compressor and some fans) can be switched on or off just as fast as a heating element, at least as far as the article is concerned. The water heater switch is a dead simple solution though, credit due for that.
A bit of a rabbit trail here: A heat pump would not provide as much potential load, but it gives the flexibility of working for both heating and cooling, and also puts the electricity to better use. The key would be to put a cheap heat storage element in between the customer-premises heat pump and the final use, so that the utility can fire up the heat pump regardless of the customer’s need, and the customer has a huge bank of hot or chilled water at their disposal. Combined with a radiant floor heating system, and tied into a water-source HVAC system, this is a real energy efficiency boon by taking waste energy and getting it past the meter into the customer premises. Go ahead and throw a Steffes(tm) resistance heater in the water heater while we are at it. Have your cake and eat it too.