Chasing growing electric demands and reducing reliance on fossil fuel in the consumer sector can be solved separately and simultaneously.

Just because this will put more demand on the electrical grid doesn't mean that energy can't come from sources other than the dam (including fossil fuels).

This move just centralizes the energy production to the electric grid, so that any source of energy can power it, rather than only fossil fuels.

They will use natural gas to power these homes too, but it'll be more efficient and safer than transporting gas to the last mile and burning it on site. And when the grid has other energy sources ready to handle the demand, the fossil fuel sources can be retired.