Climate & Environment
Sleeved PPA
Definition
A sleeved PPA is a renewable power purchase agreement in which a utility or licensed supplier acts as intermediary: the corporate buyer contracts with a renewable generator, and the utility physically delivers equivalent power through the grid to the buyer's sites, managing balancing and settlement for a sleeving fee. It contrasts with direct physical PPAs (limited to co-located supply) and purely virtual/financial PPAs (contracts for difference with no power delivery).
References
Supports definition and framing.
Supports definition and framing.
Overview
How it is used
The structure appears in corporate renewable procurement (RE100 reporting), utility green tariffs, and Scope 2 market-based accounting under the GHG Protocol.
Why it matters
Sleeved PPAs are one of the main mechanisms by which corporate demand directly finances new renewable build — procurement as climate policy.