9REN Holding v. Spain

Summary:

In March 2015, 9REN filed a claim against Spain alleging a violation of the fair and equal treatment provisions of the Energy Charter Treaty by the Government of Spain. The claim arose as a result of measures, implemented in 2010, which introduced a number of changes to a previous incentive regime for renewable energy established in 2007, and included a 7 per cent tax on power generators’ revenues and a reduction in subsidies for renewable energy producers.

The Tribunal awarded the company damages of nearly USD $50 million.

At Issue: Claims arising out of a series of energy reforms undertaken by the Government affecting the renewables sector, including a 7 per cent tax on power generators’ revenues and a reduction in subsidies for renewable energy producers.