The arbitration case involved Antaris GmbH, a German commercial company, and Dr. Michael Gode ("Claimants") against the Czech Republic ("Respondent"). The Claimants filed a claim against the Czech Republic concerning alleged violations of the Energy Charter Treaty (ECT) and the bilateral investment treaty between Germany and the Czech and Slovak Federal Republic, signed on October 2, 1990. Specifically, they argued that legislative changes made by the Respondent—specifically, measures introduced by the Czech government to address the financial burden caused by the solar energy boom—negatively impacted their investments in photovoltaic power plants. These changes included the implementation of the Solar Levy, which was a tax imposed on solar installations receiving excessive feed-in tariffs (FiTs), and the removal of the 5% cap on the reduction of FiTs for solar plants connected to the grid from 2011 onward. The Respondent argued these changes were necessary due to - among other things - concernd over state aid rules under EU law.

Consequently, the Claimants requesed that the Tribunal issued a declaration stating that the Respondent's actions constitute unfair treatment in violation of the ECT and the German BIT; they also sought compensation for losses incurred due to these breaches. The Respondent, in turn, requests the dismissal of all claims on the grounds including of lack of jurisdiction over taxation measures under the ECT.

The Tribunal found that Solar Levy did not qualify as a taxation measure under Czech law or within the meaning of Article 21(7) ECT. Despite being administered like a tax and titled 'levy', substantial considerations suggest otherwise. The Tribunal found no requirement for an express stabilisation provision to establish a legitimate expectation. However, it concluded that investors should have been aware that dealing with the solar boom was a fast-moving political issue and legislative changes were possible. Finally, three-quarters of arbitration costs should be borne by Claimants while Respondent should be awarded legal costs. All claims made by Claimants were dismissed, and they were ordered to pay within 28 days a sum of US$1.75 million and GBP 178,125.50 to the Respondent.

Antaris Solar GmbH and Dr. Michael Göde v. The Czech Republic

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Antaris Solar GmbH and Dr. Michael Göde v. The Czech Republic - opinion

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

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Area of the economy in which actors engage in identical or related activities.

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A tax advantage is a fiscal incentive where the government reduces or exempts selected activities, goods or actors from taxes.

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A policy instrument designed to support the development and acceleration of renewable energy sources by providing a guaranteed, above-market price for producers.

The processes through which enterprises can identify, prevent, mitigate and account for how they address their actual and potential adverse impacts. Due diligence is the idea that reasonable precautions should be taken to avoid causing harm to people, the environment, or society. It also involves identifying and mitigating risks before they occur.

A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

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Production of electricity and heat from solar irradiation.

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People with different national or cultural traditions from the dominant population

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Antaris Solar GmbH and Dr. Michael Göde v. The Czech Republic - opinion

Policy instrument

Impacted group

Just transition

Renewable energy

Fossil fuel

Economic sector

Finance