The British developer Low Carbon and Norwegian energy company Equinor has announced movements that can help reduce risks related to their renewable portfolios.
Low Carbon, a large -scale developer of renewable energy, Independent Power Producer (IPP) and investor, said on Tuesday (April 8) that it has formed a strategic partnership with insurance company Paratus after a commercial transaction.
Paratus, a specialist in Energy Price Insurance (RE), has created a policy to stabilize the balance sheets of generators and improve their credit profiles. Low Carbon claimed that this would reduce the exposure of power purchase agreements (PPAs) and route-to-market (RTM) strategies for energy market fluctuations that could affect them adversely.
This limitation of exposure would make the assets of renewable energy more invested, low carbon.
The assets of the company of Solar PV, Wind and Battery Energy Storage System (BESS) of the company comprises a majority of projects in the UK and a smaller number on continental European markets, including Germany, the Netherlands, Poland and Romania. It also develops projects for waste-to-energy and strives for development opportunities in North America.
Equinor has meanwhile decided to integrate his solar pv and wind -renewable energy portfolios with its gas generation and energy storage flexible power portfolios in a newly combined business area.
The company, which is best known in the VK for offshore wind but also Bess projects, said this morning that it will create a power (PWR) business division, by combining its business area for renewable energy sources (REN) with flexible power assets of its gas and energy storage marketing (MMP) Division and processing.
Both gas and power trade and market analysis remain within its MMP business area, of which Equinor claimed that it would make a “holistic approach to power and markets” possible.
At the same time, the addition of flexible generation and energy storage assets to the company for renewable power generation would help spreading the portfolio risk over the various technological types.
“By combining our portfolio of Renewables with our flexible power supply, we strengthen our competitiveness and value creation on the energy market,” said Equinor CEO otherwise Opdal, and claimed that the relocation “reinforces our ability to achieve a high return.”
The organizational changes come into effect in September and Helge Haugane, currently head of Gas & Power in the MMR company area, has been named executive vice president for PWR.
“By integrating our energy company, we can look at technologies, markets and ownership structures. This will be important for further profitable growth in the rapidly changing world of power,” Haugane said.
