renewable technologies with high learning rates, such as solar
thermal, wave, and wind, into the market. The more these
technologies are deployed, the lower their capital costs
become due to assumptions on learning rates. The IEA does
not state the limits used in their modeling but the results
suggest they may use a cap lower than 50% on intermittent
technologies, yet not as low as 20% since both intermittent
renewable generation and DG contain intermittent
technologies and the total of these is 34%.
It is worth reiterating that the modeling simply examines the
savings that might be achieved by allowing an increase in
intermittent generation—mostly attributed to the presence of
smart-grid-enabling infrastructure. It does not specify how
this may be achieved, only the savings that might be realized
through their use. There are many possible ways in which
intermittent generation may be better integrated into
electricity networks including the use of storage, better
management of demand through increased consumer
awareness and appliance automation, and better forecasting of
demand and supply for instance as discussed below and
covered in more detail in other chapters of this book.
The modeling displayed above shows that in later years,
traditional peaking plant such as gas turbines become less
prevalent and slower reacting plant such as nuclear begin to
dominate large centralized facilities. In simple terms in
current electrical networks the balance between supply and
demand is provided by these large plant, which receive
appropriate signals from a central control to ramp their supply
up or down as required. Ongoing developments in
transmission and centralized dispatch fit within the wider
smart grid paradigm, and it will need to continue to evolve to
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