The problem is, existing market mechanisms for power don't work well for this.

A wind operator will face a low energy price when wind is overproducing; but society needs wind to be significantly overprovisioned to avoid burning carbon.

> The push for extra capacity and small scale distributed energy storage

Storage is really hard. We don't know how to meaningfully do it yet. Maybe concentrated/thermal solar power will deliver it. Maybe power->gas->power will. Batteries are at best a small stopgap.

Further, the net result is that we have less grid stability, because we have variable loads and lots of non-dispatchable generation. The loading on transmission is fairly unpredictable, too.