Paratus and Low Carbon Form Groundbreaking Partnership to Combat Energy Price Risks

Unveiling a Pioneering Renewable Energy Partnership

On April 9, 2025, a remarkable collaboration emerged in the renewable energy sector when Paratus Holdings Limited, an avant-garde (re)insurance group focused on energy price risks, announced a strategic partnership with Low Carbon, a trailblazer in the renewable energy landscape. This innovative engagement marks a significant milestone as it aims to safeguard revenues for Low Carbon’s diverse portfolio by utilizing Paratus's groundbreaking energy price insurance policy.

A Unique Collaboration

The partnership skillfully combines Paratus’s extensive experience in energy markets with Low Carbon’s commendable track record as an Independent Power Producer (IPP). This alliance is strategically aimed at enhancing Low Carbon’s Power Purchase Agreements (PPAs) and market strategies, thereby addressing the volatile nature of power pricing. The unique insurance offering will help stabilize revenue streams, thereby securing financial health for renewable energy generators.

Paratus's insurance solutions play a crucial role in offsetting the risks associated with adverse energy market fluctuations. By fortifying the balance sheets of power generators and elevating their creditworthiness, these solutions significantly boost the investment appeal of renewable assets, thereby fostering industry growth and expediting the crucial process of decarbonization.

Expert Insights from Paratus and Low Carbon

Gus Majed, the Group CEO and Founder of Paratus, expressed his enthusiasm about this partnership, stating, "We are delighted Low Carbon has selected Paratus as a partner. This collaboration marks a significant milestone in our mission to revolutionize 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 focused 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."

As the world increasingly transitions towards sustainable energy, Paratus is dedicated to delivering innovative, insurance-based solutions that not only address energy price risks but also enhance the bankability of renewable power generators. With an eye on expanding operations further into Europe and the U.S, the company looks forward to fostering more strategic partnerships that reinforce the renewable energy sector’s long-term resilience.

Meanwhile, Marco Verspuij, Head of Power Management at Low Carbon, lauded the partnership, stating, "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 enables Low Carbon with an innovative mechanism for managing price risks, ensuring long-term revenue stability, which is crucial for an IPP."

Low Carbon has committed to making a significant positive impact in the fight against climate change by scaling up renewable energy projects. They aim to develop, own, and operate various green energy projects that include solar, wind, energy storage, and energy from waste across the UK, Europe, and North America. By aiming to establish 20 GW of new renewable capacity by 2030, they are actively contributing to the global shift towards 100% renewable energy.

About Paratus and Low Carbon

Founded as the world's first (re)insurer focusing on energy price risks, Paratus Holdings is backed by Ara Partners and is committed to revolutionizing the renewable energy sector by mitigating adverse price volatility. By being licensed and regulated by the Guernsey Financial Services Authority (GFSC), Paratus offers scalable insurance solutions suitable for diverse portfolios and asset types across the UK, Europe, and the U.S.

Low Carbon, recognized as a certified B-Corporation, thrives on its mission to create large-scale renewable energy systems that significantly combat climate change. Their initiatives underline their objective to deliver exceptional value to communities, investors, and the environment.

As both companies embark on this strategic partnership, they embody a shared vision of fostering sustainable energy practices and setting new precedents for revenue security within the renewable energy sector. With this partnership, the future of renewable energy looks brighter and more resilient than ever.