May 07, 2017

Brattle Economists Provide Testimony on Behalf of Solar Investors in Spain Resulting in €128 Million Award

Spain has lost the first of the international arbitration claims under the Energy Charter Treaty, arising from the application to thermal solar investors of certain changes to the Spanish regulatory framework for renewable installations. The International Centre for the Settlement of Investment Disputes (ICSID) has rendered an €128 award in favor of the British-based Eiser Infrastructure Limited and its affiliate Energia Solar Luxembourg S.à r.I., which own three 50 MW thermo-solar power plants in Spain, ASTEXOL-2, ASTE 1A, and ASTE 1B.

At present, Spain faces more than 25 international arbitration lawsuits initiated by renewable investors as a result of the reform of the financial incentives affecting photovoltaic, thermal solar, wind and small hydro installations from 2010. In 2016, the Arbitration Institute of the Stockholm Chamber of Commerce also issued two rulings regarding subsidy cuts to the photovoltaic sector, although in those occasions the decisions favored Spain.

Brattle principals Mr. Carlos Lapuerta, Mr. Richard Caldwell, and Dr. José Antonio García provided testimony on behalf of Eiser Infrastructure Limited and its affiliate Energia Solar Luxembourg S.à r.I. in the legal proceedings before ICSID in Paris, France. More information on this decision can be found here.

Associated Experts
Caldwell 3
Richard Caldwell has extensive experience in economic and financial analysis and valuation across a broad range of industries, from electric power and natural gas to banking and credit cards. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Garcia 084
Dr. García advises clients on competition, regulation, and restructuring policy in the energy, banking, telecommunications, and food supply industries. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Lapuerta 103pp
Mr. Lapuerta is an expert in economic analysis and financial valuation, which he frequently applies to estimate damages in international arbitration proceedings. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4