The PV Investors v. Spain

A group of European investors filed a claim for compensation arising out of a series of energy reforms undertaken by the Spanish Government affecting the renewables sector. The measures, implemented in 2010, introduced a number of changes to a previous regime established in 2007, and included a 7 per cent tax on power generators’ revenues and a reduction in subsidies for renewable energy producers. The investors argued that Spain had breached Article 10(1) of the Energy Charter Treaty, which provides that investors should be provided with stable and fair treatment and freedom from discrimination by encouraging them to invest in the Spanish renewable energy sector on the basis of the 2007 scheme and under the expectation that the scheme would remain in force. The Permanent Court of Arbitration sided with the investors and awarded them $99.8 million USD. The case is one of a number of requests for arbitration brought against Spain in regards to the same policy measures.