Intermittent renewable power production from wind and sun requires significant backup generation to cover the power demand at all times. This holds even if wind and sun produce on average 100% of the required energy. Backup generation can be reduced through storage - averaging in time - and/or grid extensions - averaging in space. This report examines the interplay of these technologies with respect to the reduction of required backup energy. We systematically explore a wide parameter space of combinations of both technologies. Our simple, yet informative approach quantifies the backup energy demand for each scenario. We also estimate the resulting total system costs which allow us to discuss cost-optimal system designs. (C) 2012 Elsevier Ltd. All rights reserved.