A Sleeved PPA is a structured energy contract where a corporate buyer purchases electricity from a renewable generator through an intermediary, typically a utility or energy supplier, which “sleeves” the electricity into the retail supply agreement.
The physical electricity flows through the grid via the supplier, while the corporate buyer still receives both power and green certificates.
This arrangement allows businesses to benefit from renewable energy without needing to manage complex wholesale market logistics.
The supplier handles grid access, balancing, and other regulatory obligations, making it easier for companies to integrate renewable electricity into their operations.
Sleeved PPAs are ideal for medium to large businesses that want the advantages of a direct renewable energy agreement but prefer the simplicity of working with a familiar utility partner. Examples include universities, hospitals, real estate companies, or regional manufacturers.
They are also well-suited for organisations aiming to demonstrate a tangible link to renewable energy generation, while maintaining operational simplicity and managing financial risk. The intermediary ensures smooth delivery, often offering additional services like demand forecasting and billing consolidation.
Sleeved PPAs can offer price stability, carbon reduction benefits, and reputational value, especially when publicly communicating environmental initiatives.
Businesses looking to decarbonise without developing deep in-house energy expertise often find Sleeved PPAs to be a practical and efficient solution.