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But the way I described is the way the grid is currently managed in this country, at least in PJM or ISO-NE with which I am familiar. Renewables, like wind and solar, are paid for energy and they get Renewable Energy Credits (REC's). They do not get paid for capacity. We may get to the smart-grid you are talking about but we still have a long way to go. You are correct about India heading in that direction, they will need a distributed smart grid to manage that much solar. They will also need a way to either store solar energy or provide reliable backup power to deal with the times when the sun is not shining brightly.
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