|
Frank
|
Subsidies, subsidies, subsidies.
Spain faces €8 billion in renewable legal claims over past solar boom
Spain is investing in solar energy but still faces billions of euros worth of legal claims over previous energy investments.
When work started on Andasol in 2008, it was the largest solar energy plant in the world and its black panels stretched over enough land to cover 70 football pitches in the south of Spain near Granada.
Fourteen years later, the 51-hectare plant which produces a total of 495 GW-h of power per year, is embroiled in a multi-million-euro international legal battle between the Spanish government and a series of investors.
But this is just one of 51 claims totalling €8 billion that Spain’s left-wing coalition government is fighting against. Why is Spain facing legal claims? In 2007, Spain implemented several regulatory measures with the purpose of stimulating investment in the burgeoning renewable energy sector.
Initially, the system was a huge success, attracting interest from domestic investors and international companies.
However, after the boom, came the bust.
After the 2008 financial crisis, Spain was no longer able to guarantee the initial incentives and between 2012-2014, the government retrospectively removed them, prompting legal claims by the investors.
One of these claims started in 2013, when Infrastructure Services Luxembourg S.A.R.L and Energia Termosolar B.V, filed an arbitration claim against Spain with the International Centre for Settlement Investment Dispute (ICSID), alleging it breached its obligations under the Energy Charter Treaty because it removed incentives.
The companies claimed €196 million in damages. Spain denied the claim. Another investor involved in the same plant has also claimed damages.
Six years later, the tribunal ruled in favour of the companies and awarded €101m.
Spain has filed an application to annul the award, saying it would be construed as state aid.
Lawyers for the investors said they will pursue Spanish investments around the world to ensure payment. https://www.euronews.com/my-europe/2022/12/27/spain-faces-8-billion-in-renewable-legal-claims-over-past-solar-boom
How much does a conventional coal, gas or hydro power station generate? Answer: https://openinframap.org/stats/area/Australia/plants
|