Paratus Holdings, a reinsurance group specialising in energy price risk, has partnered with Low Carbon, a renewable energy company and Independent Power Producer (IPP).
The collaboration aims to address the issue of renewable energy price risk and help protect revenue streams across Low Carbon’s portfolio.
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This partnership combines Paratus’ energy price insurance solutions with Low Carbon’s expertise in renewable energy asset management.
By integrating Paratus’ insurance policy, Low Carbon seeks to mitigate the impact of adverse energy price movements, providing greater revenue stability.
The solution is designed to enhance Low Carbon’s power purchase agreement (PPA) and route-to-market strategies, offering a way to manage fluctuations in power prices more effectively.
Paratus’ insurance policy works by stabilising the balance sheets of power generators and supporting their credit profiles.
Paratus Group CEO and founder Gus Majed said: “We are delighted Low Carbon has selected Paratus as a partner. This collaboration marks a significant milestone in our mission to revolutionise the renewable power sector with energy price insurance and demonstrates our commitment to aligning with our clients to deliver optimal risk management solutions.
“Low Carbon is a leading IPP focussed not only on scaling capital but also on outperforming in the renewables sector. They are an ideal partner as we both enter our next phase of growth.”
Low Carbon head of power management Marco Verspuij stated: “Paratus has a deep understanding of the renewable energy industry and the energy market expertise required to navigate industry-wide challenges on price risk and revenue protection.
“The Paratus insurance product provides Low Carbon with an innovative price risk management mechanism that will help to secure long term revenue certainty in combination with PPAs and CfDs [contracts for difference] to capture power price volatility that is critical for an IPP.”
In September 2024, Paratus Renewables Insurance secured regulatory approval from the Guernsey Financial Services Authority to offer insurance coverage to the renewable power industry.
Backed by Ara Partners, Paratus offers insurance solutions to mitigate energy price risk and volatility across the US, UK and Europe.
