Spain's Immunity Claim Rejected in Renewable Energy Incentive Case

Spain's appeal to claim immunity in a case regarding renewable energy incentive cuts was rejected in London's Court of Appeal. Two investors were awarded 101 million euros by ICSID, which Spain tried to overturn. The court ruled states under ICSID can't claim sovereign immunity.

Spain's attempt to claim immunity in a lawsuit over renewable energy incentive cuts was dismissed by a London court on Tuesday. The case, initially brought by Infrastructure Services Luxembourg and Energia Termosolar 10 years ago, resulted in a 101 million euro award by the World Bank's ICSID.

Last year, London's High Court registered the investors' award and denied Spain's effort to overturn it based on sovereign immunity. Spain's subsequent challenge at the Court of Appeal was also rejected.

Judge Stephen Phillips confirmed that signatory states to the ICSID convention cannot contest the registration of awards on the basis of state immunity, solidifying the investors' victory over Spain.

(With inputs from agencies.)