In 2015, two companies based in Denmark and Luxembourg invested in photovoltaic (PV) plants across Italy. The plants benefited from a feed-in tariff scheme, which was originally intended to run for a period of 20 years from each PV plant's connection to the grid. In 2015, a new Decree Law came into force which modified the amount and duration of incentive tariffs. The claimants alleged that this constituted a violation of the fair and equal treatment clause of the Energy Charter Treaty and claimed compensation.
In 2019 the Arbitral Tribunal found that Italy had breached the relevant provisions of the Charter and awarded the companies compensation of USD $13.6 million.
At Issue: Claims arising out of a series of governmental decrees to prematurely cut tariff incentives for photovoltaic plants.