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Comparison

Direct PPA vs sleeved PPA: what role for the supplier?

In a direct PPA, the buyer contracts with the producer and handles balancing via a balance responsible party. In a sleeved PPA, a power supplier sits between them to absorb imbalances. Generic comparison of both schemes.

CriterionVoltarioneSleeved PPA
Contractual scheme
Producer ↔ buyer (direct)
Producer ↔ supplier ↔ buyer
Balancing
Designated balance responsible party
Handled by supplier
Cost structure
Producer price + balancing costs
Producer price + sleeve fee
Operational complexity
Higher on the buyer side
Lower on the buyer side
Third-party dependency
Low (parties chosen freely)
High (supplier is critical)
Marketplace relevance
Native structure on Voltarione
Possible via supplier partner

FAQ

  • When is a sleeved PPA preferable?

    When the buyer has no access to a balance responsible party or wants to delegate all operational handling, accepting a sleeve fee in exchange.

  • Is a direct PPA always cheaper?

    Often yes on headline €/MWh, but balancing and shaping costs must be added and can erode part of the spread.

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