Reducing frequency reduces power because all the motors connected to the grid slow down a bit, and when we had manufacturing industry there were a lot of motors. One plant I visited in Leeds had a 3000 hp motor driving a car shredder, and that wasn’t an unusually high load for a plant
Hmm… I’m not so sure! When demand increases above the actual power input to the grid, the alternators will slow down slightly and the frequency will reduce. But as someone above said, the equation for AC power at least for a resistive load does not include frequency. But the generated voltage will decrease because V = dB/dt where B is flux density, so this will decrease the supplied power, actually the fractional decrease being twice the fractional frequency and voltage reduction. Overall power factor of course comes in and slightly changes the numbers.