Insurance group Paratus Holdings Limited, which specialises in energy price risk, has obtained regulatory approval from the Guernsey Financial Services Authority to offer insurance solutions tailored to the renewable power industry via Paratus Renewables Insurance Limited.
With a focus on accelerating the adoption of renewable energy and sustainable fuel alternatives, Paratus offers pioneering insurance products aimed at safeguarding the financial performance of renewable power generators.
The newly granted license will enable the company to extend its proposition to sectors like wind, solar, biofuels, and hydrogen, in addition to its existing portfolios in aviation, maritime, and freight.
Paratus’ renewable power insurance addresses the volatility of energy prices, offering protection for power generators against adverse market conditions. This, in turn, enhances the competitive position of renewable energy assets compared to traditional risk management methods.
Additionally, consumers of renewable power can benefit from Paratus’ products by more effectively managing operational costs and protecting balance sheets. Paratus’ deep sector expertise allows it to work closely with clients in navigating the complexities of the energy market.
The regulatory nod comes on the heels of a significant equity investment from Ara Partners, a private equity firm with a focus on industrial decarbonisation. The capital infusion has supported Paratus in scaling its operations and enhancing its offering.
“The renewable power licence is central to our future growth,” said founder and group chief executive Gus Majed (pictured). “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.
“It will help catalyse the growth and competitiveness of renewable power assets, as Paratus expands across the UK, Europe, and the US.”
In addition to the green light, Paratus has formed a strategic alliance with px Group, an Ofgem-licensed business that offers power balancing services.
The collaboration will enable the group’s insurance brokerage division, Paratus & Partners, to provide additional value by integrating px Group’s expertise in power offtake and round-the-clock monitoring capabilities into the insurance offering.
“px Group has longstanding 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,” Majed noted.
“With px Group, we can deliver an end-to-end complete solution for renewable power generators.”
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