CEF Energia v. Italy

Summary:

CEF Energia, a Dutch company, filed a claim against the Italian government arising out of changes to Italy's incentive schemes for renewable energy. The company had invested in three solar energy installations in Italy under the terms of the earlier version of the scheme. The company alleged that the changes to the scheme violated the fair and equal treatment provisions of the Energy Charter Treaty. Despite Italy's claims that the company's own due diligence reports showed that it was aware of the potential for changes to the scheme, the majority of the tribunal held that Italy's actions had breached a legitimate expectation on the part of the company and awarded the company USD $10.7 million in damages.

At Issue: Claims arising out of a series of governmental decrees to cut tariff incentives for some solar power projects.