I think it’s very promising/exciting as a method of smoothing out the demand curves of the electric grid. Plus, it’s fairly straightforward to modify existing dams/hydro infrastructure to have this capacity.
Since some dams are already used as water reservoirs for drinking/agriculture, this could be quite viable if the desalination can be done cheaply and efficiently at scale (not sure if this is even possible on the scales required for this idea to make sense, though).
Perhaps one way of encouraging a "greener" grid is to first encourage the development of cheap energy storage solutions, and then letting the market figure out the best way to utilize such storage (rather than the other way around). Might lead to more efficient/creative green energy solutions.