This model can be enacted by local authorities as follows: ​

• Local authority (as generator) designs, builds and commissions solar generation asset.​
• Renewable energy generated by the solar asset is purchased by the local authority (as offtaker) at an agreed upon volume and price (as stipulated in the Sleeved PPA contract).​
• Renewable electricity is exported to the grid and ‘sleeved’ to local authority owned sites.​
• An energy supplier (or other balancing responsible party) is required to facilitate the ‘sleeving’ and will charge a fee for this service.​

There an arrangement is referred to as a ‘Sleeve to Self’ PPA where the local authority assumes the role of generator and offtaker​.

• A sleeved PPA is when an organisation “sleeves” their generated power to their own sites despite not being physically connected
• An energy supplier facilitates the sleeving and will charge a fee dependent on location and time of generation
• The generator and off-taker will agree a price structure for the lifetime of the PPA, even if they’re the same organisation
• Reduction in CO₂ emissions through transfer of Renewable Energy Generation Origin (REGOs) certificates for the energy purchased
• Can include storage to increase revenue opportunities

Key Benefits

Financial and CO₂

• Decrease in energy bills for off-taker
• Minor uplift in revenue as a generator depending on PPA setup
• Provides long term price security for generator and off-taker
• Reduces carbon emissions – for off- taker through the purchase of REGOs

Other Benefits

• Local skills and jobs
• Easy to setup
• Highly scalable if right sites can be found in local area

Risks and Considerations

• Limited commercial viability for smaller scale projects and more complicated sites
• Business case dependent on future energy price forecasting
• Existing supply contracts may not include best value terms for sleeving, need to negotiate at the same time supply contract is up for renewal
• Best pricing will be for projects, or aggregation of projects, above 5MW