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How does demand response stabilize renewable-heavy grids?

Demand response - IEA

Demand response stabilizes renewable-heavy grids by using pricing signals and smart devices to shift electricity consumption, balancing out the intermittent supply of solar and wind energy [1][2]. Because renewable generation fluctuates and electricity must balance at all times, dynamic pricing models and smart meters encourage users to reduce or move their usage away from peak hours [3][4]. For households, this can involve smart thermostats that automatically cycle off air conditioning during peak demand or homeowners running washing machines during off-peak hours [5]. Industrial examples include manufacturing facilities participating in utility programs to shed loads, coasting ventilation systems, or pre-heating water to shift consumption [6][7].Would you also like to know how smart meters and dynamic pricing models operate?