But what I don't get: the electricity producer has to pay someone to take the excess electricity off their hands? The producer can't route the excess to, well... nowhere?
If we assume the numbers for a sort of medium-size nuclear plant, we've got a total power generation of 500MW.
Dumping that kind of power is... hard.
If I haven't missed an order of magnitude, that's enough to boil an Olympic-sized swimming pool in about 25 minutes (500MW to boil 2.5ML of water, assuming STP).
So you'd either need to build and maintain the infrastructure to burn that kind of energy when it isn't needed (not cheap) or just sell the power at a loss (likely cheaper).
This is in a country that — as I understand it — could definitely do with more desalinated water. How capital intensive can putting a huge kettle element in the sea with something to catch the vapour be?
Why not route it to a nearby neighborhood? It's free it doesn't matter if a lot is lost in transmission and you don't need to pay somebody to take it.
And once you're generating there's no great way to just "disconnect" in many cases. If you disconnect the load, the charge still has to go somewhere. Preferably not into nearby equipment. Even the safety switches are non-trivial when dealing with high power - if you break a cable connection, the electric arc will still keep them connected.
I guess the process is somehow invertible, and once reached a certain static charge each panel stops absorbing energy?
In which case you're sort of already dumping the (non)produced energy in the environment- as heat, on each single panel?
In practical terms the energy has to go somewhere. Maybe they could build massive dump resistors to burn off the energy that way but doing so would only increase load on everything (shortening component lives) for no gain.
(The heat being dumped is usually low-temperature waste heat, not final output.)
There is a bit of leeway in that turbine power stations will run a little bit slower or faster depending on exact use (resulting in a grid frequency a little bit faster or slower than 50Hz) but the difference has to be made up quickly.
(not an expert, this is badly remembered from Internet articles so probably hurts to read for real experts, I'm sorry. But I hope I got the gist sort of right.)