There is a disconnect between market forces in energy production right now. Right now, short-term grid frequency and voltage stability (periods of seconds to a

There is a disconnect between market forces in energy production right now. Right now, short-term grid frequency and voltage stability (periods of seconds to a few min) is regulated automatically by the governor response of the various generators on the grid. These governors bid in advance to set their proportional gain for frequency stability. Basically, they promise to autonomously raise or lower their throttle in the future based on the observed grid frequency and voltage, and get paid later when they make good on their promise. Long-term stability (periods of 15 min or so) are regulated with market action in the spot market for power. Very long term stability is regulated by markets that clear 24 hours in advance of their estimated delivery. However, some energy producers effectively have flat rate contracts that don't participate directly in grid stability. Wind and nuclear will negotiate a fixed power-purchase agreement (typical prices are about 50 USD/MW-hr or so in the US) that will be fixed for years at a time. Likewise, residential solar customers sell back their power under the same, basically fixed rate schedule that they use to buy power. So, as the penetration of fixed-rate power increases into the market, the pricing volatility continues to increase as well. There are technologies that can help. In fact, it is trivially easy to get a grid-tied inverter to be sensitive to grid changes with controls that model virtual inertia, impedance, throttle, and so on. This is part of what I do as a controls engineer. The difficulty isn't in implementing such controls, it is in adjusting the markets such that all of the existing players are comfortable with the result. Witness this in Hawaii - the retail price of power is so high that it makes obvious good sense to install your own generation. But instead of adjusting the rates to reflect the new availability of supply, the incumbent utility seeks to raise barriers to competition instead.