Spain's Uphill Battle: Loss in Renewable Energy Court Case

Spain's appeal for immunity in a London court case involving multi-million-euro cuts to renewable energy incentives was rejected. The case was brought by Infrastructure Services Luxembourg and Energia Termosolar, who challenged Spain for retracting subsidies under the Energy Charter Treaty and won an award registered in London's High Court.

Spain faced a legal setback on Tuesday when a London court rejected its appeal for immunity in a case concerning multi-million-euro cuts to renewable energy incentives.

A decade ago, two investors - Infrastructure Services Luxembourg and Energia Termosolar - initiated arbitration against Spain under the Energy Charter Treaty for withdrawing renewable energy subsidies.

Despite Spain's attempt to overturn the arbitration award by claiming sovereign immunity, the appeal was dismissed by the Court of Appeal in London, upholding a previous decision by the High Court last year.

(With inputs from agencies.)