Herbert Smith Freehills has helped secure a victory for the Kingdom of Spain in an investor-state arbitration under the Stockholm Chamber of Commerce rules commenced by two European investors Charanne B.V. (Netherlands) and Construction Investments S.à.r.l. (Luxembourg).
The disputes concerned regulatory changes made by Spain in 2010 to the Feed in Tariff regulation governing the PV sector in Spain. The claimants alleged that these regulatory changes breached the investment protection provided for in Articles 10 (fair and equitable treatment and effective means for the assertion of claims) and 13 (expropriation) of the Energy Charter Treaty.
On 21 January 2016, an international tribunal comprised of Alexis Mourre (President), Guido Tawil and Claus Von Wobeser, rejected (by majority) the totality of the claimants' claims and ordered the claimants to pay the Kingdom of Spain's costs (€1.3 million).
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For further information, please contact Christian Leathley, Partner, Eduardo Soler-Tappa, Partner or your usual Herbert Smith Freehills contact.