I found the following IEA comment rather odd "Energy storage is rarely the cheapest way of dealing with variability of wind and solar power"; I wonder what they believe the cheapest way is?

Burning natural gas.

I found the following IEA comment rather odd "Energy storage is rarely the cheapest way of dealing with variability of wind and solar power"; I wonder what they believe the cheapest way is?

DaveMart say's burning NG. I say, demand management :turning off/down low value-added-per KWhr uses when the power isn't available.

I was simply saying that the low cost alternative referred to in the report will be burning natural gas, and that is what is used at the moment instead of storage, in large part, although it is supplemented somewhat by pumped storage and so on, and extensively in some countries such as Sweden by hydropower.

Ugo Bardi has informed us that in Italy usage per house is limited to 3kw at any one time, and in practice around 2kw.

Your both right, of course, though it seems natural gas generation is the most widely used trough-filler at the moment where hydro isn't available. I'm a major supporter of demand side management, energy storage, renewables, etc as a part of a national smart grid infrastructure upgrade.

Dave,
It seems to trouble people to think that NG would be backing up renewable energy. Even now many NG peak plants are only used at <10% capacity, so we may have a situation with expanding NG peak capacity but less NG being used for both heating and electricity generation. Some coal fired electricity rather than being retired may also be kept in reserve as back-up for example for peak summer demand.

Any realistic transition roadmap would read just so. For example, in the US Southeast, little renewable energy is available in the summer when A/C is running flat out, so while some renewable can be shipped in, coal plants would likely be needed unless supplanted by nuclear.

Of course there is: plenty of sunshine.
Especially during noon peak hours this may produce plenty of photovoltaic electricity. Or the solar heat may be converted directly to cold for air conditioning using sorption technology.
The problem is not the technology - nor the economical viability as soon as prices went down due to mass production. The problem is the same that the IEA is complaining about oil production: lacking investment.

Of course there is: plenty of sunshine.
Especially during noon peak hours this may produce plenty of photovoltaic electricity. Or the solar heat may be converted directly to cold for air conditioning using sorption technology.
The problem is not the technology - nor the economical viability as soon as prices went down due to mass production. The problem is the same that the IEA is complaining about oil production: lacking investment.

Biogas?

For places that have summer peaking, the cheapest way to deal with solar power variability is to ignore it. It works in your favor. For solar power <10% total power.

Places with winter peaking are not good solar sites but government subsidies can distort the market.

It says dealing with..

and potentially that could be one of the following or even other options

1) Direct storage in some energy storage system such as pumped hydro or compressed air
2) Production of replacement power if there is a shortfall using such things as Natural Gass
3) Transmission by cables over loooooong distances. Say the winds slacks down on location X, then often the wind will pick up on location Y wich is 500 km away. So it could be a matter of just sending power back and forth across electric cables so that areas with temporary surplus can supply energy to areas with temporary shortfalls.

I found the following IEA comment rather odd "Energy storage is rarely the cheapest way of dealing with variability of wind and solar power"; I wonder what they believe the cheapest way is?

I think they are saying it is cheaper to increase electricity generation from other means to make up for the wind/solar down times.

I think the answer is simple:
As far as I know the IEA they are not really the best experts in renewables nor in energy efficiency measures. Until recently they more or less dismissed renewables, now they are inertly switching to the learning mode. So you shouldn't take them too seriously when they talk about alternative solutions.