That argument ignores the fact that the variability goes both ways: during peak production times, electricity will be CHEAP. Hell, it's not hard to imagine a situation where capacity gets built up high enough to extend the viable high-consumption times that during peak hours the grid has to actively incentivize industry to use more power.

IMO, the right move is for the government to subsidize power generation to the point of absurd excess, like we do for agriculture. It's a matter of national security, and it ends up acting as a subsidy for industry of all kind.