Fold paper cut by rogue cop with energy (9)

'fold' is the definition.
(I know that fold can be written as sheepcote)

'paper cut by rogue cop with energy' is the wordplay.
I cannot really understand how this works, but
an anagram of 'cop' is 'pco' which is located in the answer.
'paper' could be 'sheet' (sheet is a kind of paper) and 'sheet' is located in the leftover letters.
'energy' could be 'e' (physics symbol as in E=mc2) and 'e' is found within the answer.
No letters remain.
This may be the basis of the clue (or it may be nonsense).

Can you help me to learn more?