Grid stabilization is priced in, usually using specific contracts with producers and large consumers (read steel, chemical, paper industrial sites and other with huge electricity needs). In that regard, the European markets are working fine and as intended.
Long term, we have to solve the issue of electricity storage. Short term, we are totally fine with renewables producing <60% of our electricity, and on some days even more. Base load became much less of a problem, most hige consumers in the industrial sectors found ways to be much more flexible in their demand, driven in no small degree by being to make extra money on the spot markets (and we talk 10s of millions here).
[0] https://www.iea.org/data-and-statistics/charts/lithium-ion-b... [1] https://www.canarymedia.com/articles/batteries/chart-the-rem...
First of all, I'm not aware of any large scale battery storage facilities anywhere, they are prohibitively expensive.
Second, coal and gas plant's main cost, at least in EU, is carbon tax. So the fact that they can't compete on price is a result of political decision, not of any shortcomings of the technology itself.
>> Storage in particular is so early in the cycle that we can expect the cost will drop at least in half.
Battery costs will be rising for at least the next decade, before they can fall: we need to ramp up lithium production first, before we can do that there will be significant shortages driving the prices up. The more popular EVs will become the worse it will be.