ICSID orders Spain to pay EUR 128m to solar investors it hurt

CSP facility in Spain. Author: afloresm. License: Creative Commons, Attribution 2.0 Generic

May 15 (Renewables Now) - The International Centre for Settlement of Investment Disputes (ICSID) ruled in early May that Spain should pay EUR 128 million (USD 139m) plus interest to two investors in concentrated solar power (CSP) hurt by policy changes.

Eiser Infrastructure Ltd and Energia Solar Luxembourg have been successful in their case against Spain, though they were not awarded the full EUR 300 million in sought damages.

According to the ICISD Arbitral Tribunal, regulatory changes concerning support for renewable energy have had a devastating effect on prior investments, such as these in CSP, breaching Article 10 of the Energy Charter Treaty.

Spain’s energy reform in 2013 and 2014 included retroactive cuts to renewables incentives, affecting the performance of many power producers and igniting numerous disputes. The Spanish energy ministry said in a statement the result of this award cannot be extrapolated or constitute a binding precedent for other pending arbitrations.

In a brief on the topic, law firm Watson Farley & Williams notes that numerous cases against Spain and Italy in the field of renewables are awaiting decisions from the World Bank’s ICSID. The Eiser case is the first to be closed.

(EUR 1 = USD 1.09)

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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