Media Partnership - The future of renewable energy investment in Europe: Europe's obligation to pay renewable energy awards

Renewable energy projects require substantial front-end investment as well as complicated permitting and licensing in order to operate, but what happens when there are disputes in the sector? In 1994 the European Union signed the Energy Charter Treaty which provided for International Arbitration through the World Bank ICSID Court. However, earlier this year the EU signalled it’s intent to leave the Treaty, citing its support for traditional forms of energy. Why then are nearly all of the outstanding claims in renewable energy? And what impact will leaving the Treaty have on renewable investor confidence in Europe?As an example, we will discuss the Spanish Renewable Awards. Spain has defaulted on more than 25 international arbitration awards amounting to €1.56 billion in compensation for the retroactive withdrawal of renewable premiums. This amount is further increased by over €315 million in legal and financial overcosts resulting from non-compliance with the rulings. The situation has become so bad that numerous enforcement procedures and asset seizures are in play through courts in the United Kingdom, Belgium, Australia, and the United States.The Spanish Government has been accused of taking an ideological position to refuse to settle these claims and has attempted to persuade the European Commission to retrospectively declare these awards as ’state aid’. If this is proven to be the case, what message does this give to large renewable investors about the rule of law in Europe?Join us for this important and lively discussion with renewable energy investors, senior litigators and European officials.Organised by: Aream Group SAMedia Partner: Euractiv