(SeeNews) - Feb 14, 2014 - Abu Dhabi's renewables developer Masdar has filed a legal case with the International Centre for Settlement of Investment Disputes (ICSID) against Spain’s decision to cut incentives for solar power under its renewable energy reform scheme.
The complaint was filed on February 11, according to information on ICSID’s website. In a report from Thursday, Reuters cited a spokesman for Masdar’s Dutch unit Masdar Solar & Wind Cooperatief UA as saying that the regulatory changes had hurt Masdar’s investment in Spain. It is not clear yet how much the firm’s claims could be worth.
A tribunal that will hear the arbitration case has still not been assembled, ICSID said. Spain estimates that its revised renewable energy rules will save it EUR 1.75 billion (USD 2.39bn).
Masdar, part of Abu Dhabi government-owned Mubadala Development Co, operates in Spain through Torresol Energy, a joint venture in which it owns a 40% stake. The controlling interest in the entity is owned by Spanish engineering group Sener. Torresol Energy has constructed or is currently building 120 MW of concentrated solar power (CSP) parks, including the 20-MW Gemasolar and the Valle 1 and 2 plants of 50 MW each, Masdar said on its website.
(EUR 1.0 = USD 1.368)