Actually, if we can get rid of the power spikes then we can solve our immediate problem.
Our power spike consumption is ridiculous, when 17H30 rolls around, the coal plants are pushed to peak and extra massive generators are brought to life to get enough juice into the lines for the suppertime splurge.
If we could build a massive and decent power storage unit that can be fed during off-peak times and then utilised later to provide the extra boost electricity required, then we'd be plain sailing.
I have often wondered why we don't just crank a massive chunk of concrete into the sky, or even a massive body of water into a massive container, and then let it's weight generate the extra electricity as it is allowed to fall when required.
We already use it:
http://en.wikipedia.org/wiki/Drakensberg_Pumped_Storage_Scheme
http://en.wikipedia.org/wiki/Ingula_Pumped_Storage_Scheme
Compressed air energy storage also seems like a good idea. Wonder if anybody's developed a version you can use at home?