First award in relation to renewable energies in arbitration against Spain (February 2016)
The award is not favourable to the Investors' position.
The Arbitration Tribunal only decided on the legislative changes of 2010 and did not analyse the possible effects or consequences of the amendments made in 2013 and 2014.
The decision refers to the photovoltaic sector and does not analyse the impact of changes on other technologies.
This is a non-binding precedent which will surely be taken into account by other arbitration tribunals in other pending and potential future claims against Spain.
The award provides hints of the elements that should be evidenced in order to consider that Spain's actions constitute breaches of Articles 10 and 13 ECT.
There is a dissenting opinion by arbitrator Guido S. Tawil regarding the effective breach by Spain of Article 10 ECT, because of having created legitimate expectations for the Investors as a result of the Special Regime regulated in Spanish Royal Decrees 661/07 and 1578/08.