This is no knock against natural gas, but I've not heard that other than from the natural gas associations. Hydro power, around the world, is considered the best backstop accompaniment to any source of what we can see as non-traditional or renewable sources of energy.
You also mentioned that if the market doesn't see a profit to be made, they simply won't exploit it. While generally true, is it not specifically the case that if a government is interested in having a resource exploited, then it can alter the market conditions? They can change the tax code. They can deregulate certain environmental restrictions.
Obviously there's a role government plays, whether one energy source is exposed or another. There is no pure market in the energy field. We all know that the so-called level playing field doesn't exist anywhere in Canada, if not in the world.