Brattle Economists Provide Testimony on Behalf of Solar Investors in Spain Resulting in €128 Million Award

Spain has lost the first of the international arbitration claims under the Energy Charter Treaty, arising from the application to thermal solar investors of certain changes to the Spanish regulatory framework for renewable installations. The International Centre for the Settlement of Investment Disputes (ICSID) has rendered an €128 award in favor of the British-based Eiser Infrastructure Limited and its affiliate Energia Solar Luxembourg S.à r.I., which own three 50 MW thermo-solar power plants in Spain, ASTEXOL-2, ASTE 1A, and ASTE 1B.

At present, Spain faces more than 25 international arbitration lawsuits initiated by renewable investors as a result of the reform of the financial incentives affecting photovoltaic, thermal solar, wind and small hydro installations from 2010. In 2016, the Arbitration Institute of the Stockholm Chamber of Commerce also issued two rulings regarding subsidy cuts to the photovoltaic sector, although in those occasions the decisions favored Spain.

Brattle principals Mr. Carlos Lapuerta, Mr. Richard Caldwell, and Dr. José Antonio García provided testimony on behalf of Eiser Infrastructure Limited and its affiliate Energia Solar Luxembourg S.à r.I. in the legal proceedings before ICSID in Paris, France. More information on this decision can be found here.