The Danish company European Solar Farms presented on December 21 the thirty-second complaint against Spain before the International Court of Settlement of Investment Disputes (ICSID), dependent on the World Bank, for the cuts to renewables that were made during the previous Executive President of the Government, Mariano Rajoy, in July 2013. According to the information sent to the ICSID, the company, based in Denmark, has the legal advice of the law firm King & Spalding. This is the third demand filed with the agency so far this year against the Government of Spain for cuts in the remuneration of renewables. The previous one took place last November and was presented by the Swiss EBL and the Spanish Tubo Sol PE2.
Of the more than 30 complaints, the ICSID already failed in three of them in favor of the plaintiff, in the cases of Masdar, belonging to the sovereign fund of Abu Dhabi Mubadala, recognizing a compensation of 64 million euros; Eiser Infraestructure, condemning to pay 128 million euros plus interest; and the Antin fund, with the payment of an indemnity of 112 million euros.
However, in all three cases the execution of the awards has not been carried out, since they are appealed by the Spanish Government in the annulment proceedings, in the case of Eiser, or in the period of request for rectification, in the lawsuits of Masdar and Antin.
Spain has already suffered two more setbacks in international arbitrations. Last November the Danish Athena Investments He reported that he had won an award against Spain before the Arbitration Institute of the Stockholm Chamber of Commerce (SCC), which favored him with an indemnity of 11 million euros. Likewise, the Swedish court also recognized the payment of 53 million euros to the firm NovEnergia for cuts to renewables, although later it suspended the execution of the award.
The resolution of these proceedings against the State is in the air, since at the end of last year the European Commission supported the Government of Spain in this front opened by the arbitrations of the renewable, considering that having started by investors of others States of the EU was a situation contrary to EU law.
In addition, the Court of Justice of the European Union (TEU) ruled in March that the arbitration clause included in the agreement between Slovakia and the Netherlands on investment protection was not compatible with EU law. This ruling opened a favorable path for Spain in the conflict with foreign investment funds for renewables, although not definitive, since many of the investment arbitrations have been initiated under the European Energy Charter.
The claims of foreign investors in international arbitration tribunals for these cuts to renewable energies amount to more than 8,000 million euros, as indicated last August the Minister for Ecological Transition, Teresa Ribera. Among all the lawsuits filed, highlights the one brought by the conglomerate The PV Investors before the United Nations Commission for International Trade Law (Uncitral), amounting to 1,900 million euros.