Spain's Bid for Renewable Energy Immunity Rejected

Spain lost an appeal in a London court to claim immunity in a renewable energy incentive case. Two investors were awarded 101 million euros, a decision upheld by the Court of Appeal, affirming that ICSID awards cannot be opposed based on state immunity. Zimbabwe's similar appeal was also dismissed.

Spain's effort to claim sovereign immunity in a high-profile case concerning renewable energy incentives was rejected by a London court on Tuesday. The legal battle, involving multimillion-euro claims, centers around Infrastructure Services Luxembourg and Energia Termosolar, who brought the case under the Energy Charter Treaty a decade ago.

After an arbitration process, the World Bank's International Centre for Settlement of Investment Disputes (ICSID) awarded the investors 101 million euros. The award was subsequently registered at London's High Court, which last year refused Spain's attempt to overturn the decision, citing sovereign immunity.

On appeal, the Court of Appeal dismissed Spain's claims, emphasizing that states adhering to the ICSID convention cannot contest awards on the grounds of state immunity. Notably, the ruling coincided with a separate case involving Zimbabwe, which faced similar rejection regarding its claim to state immunity.

(With inputs from agencies.)