Distributed generation is a big deal. Wind is particularly troublesome because it varies fairly unpredictably and because the wind farm sights are concentrated due to geography, large swings in power supply occur. Coal, nuclear and to a lesser extent hydro take a little time to ramp up and down their output.
Solar is more stable but poses similiar issues.
Energy storage is a pricey proposition.
If we all buy a round, I am sure we can come up with a solution.
I've read articles about utilities wanting to put NG powered fuel cells housed in customers' homes (garage). Takes a lot of load off the grid and reduces losses in transmission.
This brings me to the bigger challenge facing our energy situation - Capital Investment.
Note that it is the Utilities that want to put NG fuel cells in our home. It is the Government (stimulus money) that sunk large quantities of up-front money in the USAFA's solar setup.
Historically speaking, the electric power industry has been a stable and modestly profitable bunch. It is where widows' and orphans' investments go not to flip a quick profit, but to generate long-term income (dividend) streams, requiring a stable revenue stream and a predictable regulatory environment (both environmental and competitive).
To that end, the "new competition" in the energy business (anything from windmill companies to solar cell manufacturers) who borrow huge sums of money to create equipment capacity without a long term purchaser of said equipment signed. To me, this sends signals of instability which for so many other markets causes troubles long term.
Don't get me wrong, there are plenty of "patient captial" types of companies involved in the green energy, but it is the hot-money startups that will give the green power industry more trouble (both in publicity and in reliability) than they bring benefits.
Of course, the more of our energy basket we put in the hands of the resource producers (oil/gas/corn/etc) who themselves operate in the speculative world of futures which as we know from recent history can pummel the larger economy. The markets can be a cruel thing with much collateral damage.
And as a final note backing the concept of a stable utility industry that is equity (not debt) financed, look at the power problems in India. When more people get caught in a long-lasting brown-out (repeatedly even) than exist in the North American grid, it reminds me of how good we have it here.
We like to complain about our utility bills, but you do get what you pay for and paying enough up front in developing a good infrastructure, built to deliver reliable and stable cost power does more for the stability of our economy (and by extension our political environment) than any other design.
I need a couple beers now...