(March 4): Renewable energy investors are one step closer to seizing a property owned by the Spanish government in an affluent part of London, following a UK Supreme Court ruling, in order to enforce a €120 million arbitration award.
The two firms — Infrastructure Services Luxembourg Sarl and Energia Termosolar BV — invested in a Spanish solar facility in 2008. They both claim that the country owes them millions after the government began removing subsidies for solar projects after 2011, as the country sought to shrink its budget deficit.
The Supreme Court judges ruled on Wednesday that Spain couldn’t hide behind state immunity in order to prevent the enforcement of the award.
A group of 26 renewable energy companies affected by Spain’s non-payment of arbitration awards said in 2024 that they are owed around €1.8 billion. Australia’s High Court in 2023 also dismissed Spain’s appeals, potentially paving the way for further seizures of Spain’s commercial assets.
In a separate case that covers the same ground, the top court dismissed a case from Zimbabwe against Border Timbers Ltd and Hangani Development Co Ltd after the African country was alleged to have expropriated their assets. An arbitration award in 2015 ordered Zimbabwe to pay US$125 million.
The Supreme Court said that Spain and Zimbabwe are signatories to the 1965 Convention on the Settlement of Investment Disputes, so operate under the jurisdiction of UK courts. Therefore, they cannot oppose arbitration awards “on the grounds of state immunity”, the judges said in their ruling.
See also: UK house prices grow again to new record high, Halifax says
The Spanish government made a payout to another renewable investment fund in June after the firm filed a suit in a US federal court.
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