Spain uses the ICSID award by trimming renewable
JPEG - 91.7 kb

Business Monkey | 3 August 2017

Spain uses the ICSID award by trimming renewable

This marked the first setback for cuts to renewable undertaken in 2010 and 2013.

The Government of Spain has submitted to international arbitration tribunal ICSID appeal against the ruling which condemned him to pay 128 million euros plus interest to the British firm Eiser Infrastructure, which marked the first setback in international demands for cuts renewable undertaken first in late 2010, with the PSOE in front of the Executive, and then in 2013, with the approval of the reform of the electricity sector of the PP government.

Spain recorded its application for annulment of the award last week before the ICSID, which has thus proceeded to the "provisional stay of execution of the judgment".

In its submissions, the Spanish Government considers that there may be a conflict of interest with the arbitrator appointed by the British firm, Stanimir Alexandrov, and also part of the court in another of the lawsuits filed against Spain, informed Europa Press sources close of process.

Eiser had already gone to Court for the Southern District of New York to submit a request for recognition of ICSID award against the Kingdom of Spain, which was admitted in late June. However, Spain also appealed this ruling and called for its cancellation.

Last May, Spain recorded the first award of open procedures in the ICSID, in which it failed against cuts to renewable undertaken in the country.

However, the failure of the Arbitration Court attached to the World Bank considered that could not be extrapolated or constitute a binding "precedent for other cases. In addition, also it questioned the electricity reform undertaken by the Government in 2013 and 2014.

Thus, the award partially estimated demand for Eiser Infrastructure Limited and Luxembourg Solar Energy regarding the consequences for three solar thermal installations electrical reform carried out in 2013 and 2014 and condemned Spain to pay 128 million euros plus interest.

Spain has a total of 28 complaints before this body by trimming renewable, although the first one was solved with Eiser favorable ruling. The last one was presented by Portigon AG, the former German public bank WestLB, shortly after learning of the sentence.

Previous ICSID claim against Spain dated August last year, when societies Cordoba Beheer, Retail Cross, Sevilla and Spanish Project Beheer Companies resorted the cut applied to renewables.

To the ICSID ruling only it had solved one of these international processes, presented by the Charanne and Construction Investment firm before the Stockholm Chamber of Commerce (SCC). In this case, in which the cut 2010 was addressed, the judges gave reason to Spain.

Complaints

Between companies and international funds that have led Spain to the figure Ciadi Eurus Energy Holdings Corporation, a company owned 60% by the Japanese conglomerate Toyota has 552 MW of renewables in Spain society.

In November last year also attended the demand of a group of German banks which include Landesbank Baden-Württemberg, HSN Nordbank AG, Landesbank Hessen-Thüringen Gironzentrale and Norddeutsche Landesbank-Gironzentrale.

They have also filed complaints German E.ON, the Portuguese firm Cavalum and the Japanese JGC Corporation and German firms TLS KS Invest and Invest, Steag, BayWa, RREEF and a consortium of eight companies in which RWE is involved, among others.

source: Business Monkey