First international lawsuit ruling in favour of Spain’s feed-in tariff cuts

Facebook
Twitter
LinkedIn
Reddit
Email
There are more than 40 cases ongoing realting to the Energy Charter and the kingdon of Spain. Flickr: fdecomite

Spain’s Court of Arbitration has ruled against two companies who filed a lawsuit against the Kingdom of Spain over reforms to the PV sector made in 2010, according to a statement from the Spanish Ministry of Industry.

The international lawsuit, based on Spain’s commitment to the international Energy Charter Treaty, was filed over a decision made by the Spanish government to introduce retroactive cuts to feed-in tariffs (FiTs) for solar PV in 2010, and the harmful effects this could have on investors in the sector.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

One of the key pillars of the Energy Charter, which is a multilateral framework for energy cooperation that is unique under international law, is the protection of foreign investments.

However, the Court of Arbitration has dismissed claims from Denmark-based firm Charanne and Luxembourg’s Construction Investments, who are both shareholders in Madrid-based firm T-Solar, ruling that the two companies could not have a legitimate expectation that the regulatory framework established for renewable premiums in Spain would remain unchanged throughout the life of solar plants.

The Ministry of Industry statement said: “In fact, the Arbitral Tribunal notes that investors could have easily foreseen, given the situation, the possibility of changes in the regulatory framework.”

Charanne and Construction Investments have been ordered to pay the Kingdom of Spain EUR1.2 million (US$1.3 million) in costs and administrative expenses.

There are currently more than 40 ongoing investment dispute settlement cases against Spain relating to the energy charter.

Last week, Spain's Supreme Tribunal also ruled against five solar producers on claims over the FiT cuts. At the time, the National Association of Photovoltaic Energy Producers (ANPIER), said the sentence was unjust and marked “one of the darkest chapters in the history of Spanish democracy.”

Earlier this month, Spain’s Constitutional Court also published full details of its judgement rejecting appeals against a decrease in feed-in tariffs for renewable energy sources.

Read Next

July 11, 2024
Iberdrola has signed a power purchase agreement with fast food chain Burger King to supply power from part of a 553MW solar PV plant. 
July 11, 2024
German renewables company BayWa r.e has sold a 95MW solar PV plant in Spain to independent power producer Encavis Asset Management.
Premium
July 11, 2024
Simon Yuen takes a close look at Soltec’s floating solar tracker, which the company says is based on naval design principles.
July 9, 2024
Spain has passed a regulation regarding the installation of floating solar PV (FPV) on reservoirs in the country.
July 3, 2024
Spanish renewable power developer Zelestra has added €225 million (US$242.1 million) in loan financing to its funding streams.
July 1, 2024
Chinese module manufacturer Trina Solar has signed a collaboration agreement with IES-UPM to drive innovation in the solar industry.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
July 31, 2024
1:00 PM (BST) / 2:00PM (CEST)
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia
Solar Media Events
October 8, 2024
San Francisco Bay Area, USA
Solar Media Events
October 15, 2024
Santiago, Chile