Answer to Question 1
The diagram 13.3 on p. 248 shows this is incorrect. Water is needed,
Answer to Question 2
Not so. The real utility of energy storage is to use cheap baseload to store the
energy, then sell it at peak load, when it will cost less than to run the expensive peak load
generators. In markets with smart meters, peak energy is more expensive to buy, and so
the utility can reap even more rewards.