by Planning Engineer (Russ Schussler)
Wind and solar power are often touted as the cheapest sources of electricity in many regions, capable of delivering low-cost energy for the vast majority of the time. At first glance, this might suggest that an energy mix heavily weighted toward renewables would be the most economical choice. However, this assumption overlooks a critical issue: the fat tail problem. Just because a resource is cheaper most of the time does not mean it reduces overall system costs. This post, the first in a series, explores why prioritizing wind and solar can lead to higher costs, starting with an analogy from the financial world.
