Paratus Holdings Limited, a specialist re/insurer focused on energy price risk, and Low Carbon, a renewable energy developer and Independent Power Producer (IPP), have announced a strategic agreement to manage power price exposure across Low Carbon’s asset portfolio.

The partnership involves the use of Paratus’ energy price insurance product, designed to reduce the financial impact of fluctuations in energy markets. By providing a level of revenue protection, the policy aims to support Low Carbon’s Power Purchase Agreement (PPA) structures and route-to-market plans.

The insurance product is intended to help stabilise balance sheets and improve the credit profile of renewable energy projects, with the goal of increasing investment viability.

Paratus, licensed by the Guernsey Financial Services Authority (GFSC), offers insurance solutions across the UK, Europe, and the US, targeting a range of renewable energy asset types.

Gus Majed, Group CEO and Founder, Paratus, 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.

“At Paratus, we are committed to accelerating the energy transition by delivering innovative, and commercially viable insurance-based solutions that help renewable power generators manage energy price risk and improve bankability. As we expand into Europe and the US, we look forward to building more strategic partnerships that strengthen the industry’s long-term resilience.”

Marco Verspuij, Head of Power Management at Low Carbon, added: “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 to capture power price volatility that is critical for an IPP.

“At Low Carbon we are committed to making a positive and significant contribution in the fight against climate change by building, owning, and operating renewable energy projects at scale. As an enabler for decarbonisation, Paratus is well aligned with our mission to power the world with renewable energy.”