Originally from the Journal of Damages in International Arbitration

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AWARD, AUGUST 17, 2021

The Parties
STEAG GmbH (the Claimant)
Kingdom of Spain (the Respondent or Spain)

Sector
Renewable Energy

Applicable Treaty
Energy Charter Treaty (ECT)

Members of the Tribunal
Eduardo Zuleta (president), Guido Santiago Tawil (Claimant’s appointee), Pierre-Marie Dupuy (Respondent’s appointee)

I.  BACKGROUND

Filed in 2015, this dispute arises from STEAG’s objections to Spain’s regulation of solar thermal energy. Specifically, the Claimant argued that the Respondent’s recent reforms to the country’s renewable energy subsidy regime unfairly frustrated its legitimate, investment-backed expectations in Arenales Solar PS, S.L. (Arenales Solar), a company that built and operates a solar thermal energy plant located in Morón de la Frontera, Sevilla, Spain. The Claimant held a 26% interest in Arenales Solar, which it sold in February 2020.