Markets/Coverages: Guernsey Insurer Paratus to Offer Renewable Power Insurance
Paratus Holdings Ltd., the Guernsey-based re/insurance group, announced that Paratus Renewables Insurance Ltd. has been granted regulatory approval by the Guernsey Financial Services Authority (GFSC) to provide insurance cover to the renewable power industry.
Paratus said its insurance solutions will help accelerate the transition to renewable energy and sustainable fuels. The license approval will expand the product offering beyond aviation, maritime, and freight to renewable power including wind, solar, biofuels, and hydrogen.
Paratus renewable power insurance protects generators from adverse energy price risk, improving the competitiveness of renewable assets when compared to traditional price risk mitigation solutions. Equally, these policies enable power consumers to better manage operating costs and protect balance-sheets in a highly opaque marketplace, the company said.
The regulatory approval by the GFSC marks another significant milestone for the business, Paratus added. In January 2024, Paratus announced the completion of a growth equity investment from Ara Partners, a $6.2 billion global private equity and infrastructure firm focused on industrial decarbonization. The Ara investment has provided the capital required for Paratus to significantly scale and enhance the product offering.
“The renewable power license is central to our future growth. We are writing the world’s first policy for renewable power price protection, and our product will have a transformative impact on the renewable energy industry,” commented Gus Majed, group CEO and founder, Paratus. “It will help catalyze the growth and competitiveness of renewable power assets, as Paratus expands across the UK, Europe and the US.
Majed said the company’s focus is “on providing clear, simple and transparent solutions that transform how firms mitigate adverse energy price volatility.”
Paratus has further enhanced its offering by partnering with px Group, a fully licensed supply business that provides power balancing capabilities. This partnership enables Paratus & Partners, the group’s insurance brokerage division, to leverage px Group’s capability to provide Paratus and clients with compelling economics for physical offtake and 24/7 monitoring services, when they take out an insurance policy, the company said.
“px Group has long standing experience and a first-class reputation for working with customers in the renewable energy space, and we are confident that this strategic partnership will help to support renewable power producers even more effectively, as they drive the transition to net zero. With px Group, we can deliver an end-to-end complete solution for renewable power generators,” Majed went on to say.
Source: Paratus Holdings Ltd