I don't believe that energy would "go to waste otherwise"; if it was priced low enough (and it should be, if it's going to waste), it would make economic sense

I don't believe that energy would "go to waste otherwise"; if it was priced low enough (and it should be, if it's going to waste), it would make economic sense to build distribution infrastructure, and it wouldn't be going to waste any more. Energy is really fungible, one of the most fungible commodities. Hydro can easily substitute for coal, oil, gas and nuclear elsewhere. This makes your defence especially weak.