Innovative Partnership to Tackle Energy Price Fluctuations
Paratus Holdings Limited, a specialist in reinsuring energy price risks, has teamed up with Low Carbon, a prominent renewable energy developer and Independent Power Producer (IPP), to address power price volatility across Low Carbon’s extensive asset portfolio. This strategic alliance leverages Paratus’ cutting-edge energy price insurance solution, crafted to cushion the financial repercussions of unpredictable energy market dynamics.
By offering a safeguard for revenue, this insurance policy is designed to reinforce Low Carbon’s Power Purchase Agreement (PPA) frameworks and market strategies. The initiative aims to stabilize financial statements and enhance the creditworthiness of renewable energy ventures, thereby boosting their investment potential.
Operating under the authorization of the Guernsey Financial Services Authority (GFSC), Paratus extends its insurance offerings throughout the UK, Europe, and the US, targeting a diverse range of renewable energy projects.
Statements from Industry Leaders
Gus Majed, Group CEO and Founder of Paratus, remarked, “We are thrilled to have Low Carbon as a partner. This collaboration represents a pivotal step in our quest to transform the renewable energy sector with our innovative energy price insurance. It underscores our dedication to providing premium risk management solutions alongside our clients. Low Carbon, as a leading IPP, not only excels in scaling investment but also in outperforming within the renewable sector. They are the ideal partner as we both push forward into our next growth phase.”
Majed further emphasized, “At Paratus, we are driven to accelerate the energy transition by delivering novel, commercially viable insurance solutions that empower renewable power producers to effectively manage energy price risk and enhance project bankability. As we embark on our expansion into Europe and the US, we are keen on forging more strategic partnerships that bolster the industry’s resilience in the long run.”
Marco Verspuij, Head of Power Management at Low Carbon, added, “Paratus brings a profound understanding of the renewable energy landscape and the market expertise necessary to navigate the industry’s challenges regarding price risk and revenue protection. Their insurance product offers Low Carbon an innovative price risk management tool that ensures sustained revenue security, complementing our PPAs and CfDs while capturing crucial power price volatility for an IPP.”
Verspuij highlighted Low Carbon’s commitment to combating climate change through the development, ownership, and operation of large-scale renewable energy projects. “As a catalyst for decarbonization, Paratus aligns perfectly with our mission to fuel the world with renewable energy.”
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